Segantii Capital Management Ltd acquired a new position in Southwest Airlines Company (NYSE:LUV) during the second quarter, Holdings Channel reports. The institutional investor acquired 95,000 shares of the airline’s stock, valued at approximately $5,903,000. Southwest Airlines comprises 1.4% of Segantii Capital Management Ltd’s portfolio, making the stock its 15th largest position.
A number of other hedge funds have also recently added to or reduced their stakes in LUV. DnB Asset Management AS purchased a new stake in Southwest Airlines during the first quarter worth about $697,000. MARSHALL WACE ASIA Ltd purchased a new stake in Southwest Airlines during the first quarter worth about $22,797,000. E&G Advisors LP increased its stake in Southwest Airlines by 2.0% in the first quarter. E&G Advisors LP now owns 5,100 shares of the airline’s stock worth $274,000 after buying an additional 100 shares during the last quarter. Wedbush Securities Inc. boosted its position in shares of Southwest Airlines by 21.3% in the first quarter. Wedbush Securities Inc. now owns 13,146 shares of the airline’s stock worth $707,000 after buying an additional 2,311 shares during the period. Finally, Parallel Advisors LLC boosted its position in shares of Southwest Airlines by 2.5% in the first quarter. Parallel Advisors LLC now owns 21,857 shares of the airline’s stock worth $1,271,000 after buying an additional 524 shares during the period. 80.34% of the stock is currently owned by institutional investors and hedge funds.
Southwest Airlines Company (NYSE LUV) opened at 54.69 on Thursday. The stock has a market cap of $32.74 billion, a PE ratio of 16.77 and a beta of 1.26. The company’s 50-day moving average price is $59.97 and its 200-day moving average price is $57.17. Southwest Airlines Company has a 12-month low of $36.05 and a 12-month high of $64.39.
Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Thursday, July 27th. The airline reported $1.24 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.20 by $0.04. The company had revenue of $5.74 billion during the quarter, compared to the consensus estimate of $5.73 billion. Southwest Airlines had a return on equity of 26.07% and a net margin of 9.63%. Southwest Airlines’s revenue for the quarter was up 6.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.19 EPS. On average, equities analysts expect that Southwest Airlines Company will post $3.80 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, September 14th. Stockholders of record on Thursday, August 24th will be given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.91%. The ex-dividend date is Tuesday, August 22nd. Southwest Airlines’s dividend payout ratio (DPR) is currently 15.34%.
Southwest Airlines declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 17th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the airline to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.
LUV has been the subject of a number of recent research reports. Stifel Nicolaus reiterated a “buy” rating and issued a $80.00 target price on shares of Southwest Airlines in a report on Friday, May 26th. Deutsche Bank AG lifted their target price on Southwest Airlines from $63.00 to $65.00 and gave the stock a “buy” rating in a report on Friday, April 28th. ValuEngine upgraded Southwest Airlines from a “hold” rating to a “buy” rating in a report on Friday, June 2nd. Zacks Investment Research upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $68.00 target price for the company in a report on Tuesday, May 30th. Finally, Vetr upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $63.80 target price for the company in a report on Monday, June 5th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $65.78.
In other news, EVP Jeff Lamb sold 19,800 shares of Southwest Airlines stock in a transaction dated Thursday, May 25th. The stock was sold at an average price of $61.00, for a total transaction of $1,207,800.00. Following the sale, the executive vice president now owns 92,468 shares in the company, valued at $5,640,548. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Robert E. Jordan sold 15,273 shares of Southwest Airlines stock in a transaction dated Tuesday, May 23rd. The stock was sold at an average price of $59.72, for a total value of $912,103.56. Following the sale, the executive vice president now owns 102,527 shares in the company, valued at approximately $6,122,912.44. The disclosure for this sale can be found here. Insiders have sold 118,740 shares of company stock worth $6,923,568 in the last quarter. Insiders own 0.21% of the company’s stock.
About Southwest Airlines
Southwest Airlines Co (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest’s EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies.
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