Gradient Investments LLC Has $27.75 Million Stock Position in Southwest Airlines Co. $LUV

Gradient Investments LLC boosted its position in shares of Southwest Airlines Co. (NYSE:LUV) by 19.3% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 539,612 shares of the airline’s stock after purchasing an additional 87,146 shares during the period. Gradient Investments LLC’s holdings in Southwest Airlines were worth $27,747,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank bought a new stake in Southwest Airlines during the fourth quarter worth about $172,038,000. Massachusetts Financial Services Co. MA acquired a new stake in shares of Southwest Airlines during the fourth quarter worth approximately $143,450,000. Franklin Resources Inc. increased its holdings in shares of Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after buying an additional 2,626,853 shares in the last quarter. Mizuho Markets Americas LLC bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $55,320,000. Finally, Nearwater Capital Markets Ltd raised its stake in shares of Southwest Airlines by 75.0% in the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline’s stock valued at $115,724,000 after acquiring an additional 1,200,000 shares during the last quarter. 80.82% of the stock is owned by institutional investors.

Trending Headlines about Southwest Airlines

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Zacks Research raised multiple EPS forecasts for Southwest. Estimates increased for Q3 2026 to $0.73 from $0.58, FY2026 to $3.29 from $2.75, FY2027 to $4.96 from $4.63, and FY2028 to $5.83 from $5.70. The upgrades suggest analysts see improving profitability over the next several years.
• Positive Sentiment: Zacks also lifted estimates for Q1 2027, Q3 2027, Q4 2026 and Q4 2027, reinforcing a generally improving earnings trajectory. However, the firm maintained its Hold rating, indicating that valuation or execution risks remain.
• Positive Sentiment: Southwest is offering a promotional Companion Pass that allows qualifying customers to bring a companion on eligible flights for $5, with unlimited use during the first two months of next year. The offer could support bookings and customer engagement, though its effect on revenue and margins is uncertain. Southwest Airlines Companion Pass promotion
• Neutral Sentiment: Southwest’s Compensation Committee approved higher executive pay to retain its leadership team. Retaining experienced executives may support the company’s ongoing strategy, but increased compensation also raises operating expenses and could draw investor scrutiny. Southwest Airlines Raises Executive Pay to Retain Leadership
• Negative Sentiment: A few longer-term Zacks revisions were slightly negative: Q2 2027 EPS was reduced to $1.16 from $1.22 and Q2 2028 EPS to $1.29 from $1.30. These minor cuts temper, but do not reverse, the broader pattern of upward earnings revisions.

Analyst Ratings Changes

LUV has been the topic of a number of research analyst reports. BNP Paribas Exane increased their price target on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st. Zacks Research upgraded Southwest Airlines from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 25th. Evercore boosted their price objective on Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. Barclays boosted their price objective on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Finally, The Goldman Sachs Group raised their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, July 2nd. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Price Performance

LUV opened at $46.97 on Friday. Southwest Airlines Co. has a one year low of $28.98 and a one year high of $55.11. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The company’s 50 day simple moving average is $47.12 and its 200-day simple moving average is $44.53. The stock has a market capitalization of $22.98 billion, a P/E ratio of 28.82, a price-to-earnings-growth ratio of 0.41 and a beta of 1.14.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. During the same quarter in the previous year, the company posted $0.43 EPS. Southwest Airlines’s revenue was up 16.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Sell-side analysts anticipate that Southwest Airlines Co. will post 3.45 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s dividend payout ratio (DPR) is 44.17%.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.