Sumitomo Mitsui Trust Group Inc. Lowers Stake in Southwest Airlines Co. $LUV

Sumitomo Mitsui Trust Group Inc. lowered its stake in Southwest Airlines Co. (NYSE:LUV) by 27.4% during the first quarter, Holdings Channel.com reports. The fund owned 53,909 shares of the airline’s stock after selling 20,320 shares during the quarter. Sumitomo Mitsui Trust Group Inc.’s holdings in Southwest Airlines were worth $2,025,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. SHP Wealth Management purchased a new position in Southwest Airlines in the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines during the fourth quarter worth about $26,000. Entrust Financial LLC acquired a new stake in Southwest Airlines in the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC acquired a new position in Southwest Airlines in the 4th quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new position in shares of Southwest Airlines in the fourth quarter worth $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines Trading Up 3.6%

LUV opened at $49.27 on Thursday. The stock has a market capitalization of $24.08 billion, a PE ratio of 31.79, a P/E/G ratio of 0.46 and a beta of 1.12. The firm’s fifty day moving average price is $44.96 and its 200 day moving average price is $44.01. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. Southwest Airlines Co. has a 12-month low of $28.98 and a 12-month high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45. The business had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period last year, the firm earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, research analysts expect that Southwest Airlines Co. will post 3.17 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were issued a dividend of $0.18 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is 46.45%.

Analyst Ratings Changes

LUV has been the topic of several research analyst reports. UBS Group raised their target price on Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Evercore raised their target price on Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Morgan Stanley boosted their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research report on Monday, July 6th. Weiss Ratings cut shares of Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 8th. Finally, TD Cowen upped their price target on shares of Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Southwest Airlines presently has an average rating of “Hold” and a consensus price target of $49.58.

Southwest Airlines 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.