Advisors Asset Management Inc. Reduces Stake in Southwest Airlines Company (LUV)
Advisors Asset Management Inc. cut its position in Southwest Airlines Company (NYSE:LUV) by 16.3% during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 20,179 shares of the airline’s stock after selling 3,921 shares during the period. Advisors Asset Management Inc.’s holdings in Southwest Airlines were worth $1,254,000 at the end of the most recent quarter.
Several other institutional investors have also recently bought and sold shares of the company. Advisor Partners LLC boosted its position in Southwest Airlines by 29.5% in the first quarter. Advisor Partners LLC now owns 13,176 shares of the airline’s stock worth $708,000 after buying an additional 3,005 shares during the last quarter. Canal Capital Management LLC purchased a new position in Southwest Airlines during the first quarter worth about $330,000. Canada Pension Plan Investment Board boosted its position in Southwest Airlines by 10.8% in the first quarter. Canada Pension Plan Investment Board now owns 499,423 shares of the airline’s stock worth $26,849,000 after buying an additional 48,509 shares during the last quarter. BB&T Corp boosted its position in Southwest Airlines by 13.5% in the first quarter. BB&T Corp now owns 6,218 shares of the airline’s stock worth $334,000 after buying an additional 739 shares during the last quarter. Finally, Sumitomo Mitsui Asset Management Company LTD boosted its position in Southwest Airlines by 1.1% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 15,748 shares of the airline’s stock worth $846,000 after buying an additional 171 shares during the last quarter. Hedge funds and other institutional investors own 79.41% of the company’s stock.
Shares of Southwest Airlines Company (NYSE:LUV) opened at 52.68 on Monday. The stock has a market cap of $31.53 billion, a PE ratio of 16.15 and a beta of 1.26. Southwest Airlines Company has a 12-month low of $36.05 and a 12-month high of $64.39. The firm has a 50-day moving average price of $57.18 and a 200 day moving average price of $57.26.
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 business had revenue of $5.74 billion during the quarter, compared to the consensus estimate of $5.73 billion. Southwest Airlines had a net margin of 9.63% and a return on equity of 26.07%. The business’s revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.19 EPS. Equities research analysts expect that Southwest Airlines Company will post $3.80 earnings per share for the current year.
Southwest Airlines announced that its board has authorized a stock buyback plan on Wednesday, May 17th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the airline to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.
The company also recently declared a quarterly dividend, which will be paid on Thursday, September 14th. Stockholders of record on Thursday, August 24th will be issued a dividend of $0.125 per share. The ex-dividend date is Tuesday, August 22nd. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.95%. Southwest Airlines’s dividend payout ratio is currently 15.34%.
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A number of research firms have recently issued reports on LUV. Morgan Stanley reiterated an “overweight” rating and issued a $66.00 price objective (up from $65.00) on shares of Southwest Airlines in a report on Monday, July 10th. Wolfe Research cut Southwest Airlines from an “outperform” rating to a “market perform” rating and set a $63.00 price objective for the company. in a report on Monday, July 10th. They noted that the move was a valuation call. BidaskClub cut Southwest Airlines from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 12th. Zacks Investment Research upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $70.00 price objective for the company in a report on Tuesday, July 4th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and issued a $70.00 price objective on shares of Southwest Airlines in a report on Thursday, July 13th. One research analyst has rated the stock with a sell rating, five have given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average price target of $65.66.
In other news, Director William H. Dr Cunningham purchased 4,500 shares of the business’s stock in a transaction dated Friday, August 11th. The stock was acquired at an average price of $54.00 per share, for a total transaction of $243,000.00. Following the acquisition, the director now directly owns 66,969 shares of the company’s stock, valued at $3,616,326. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.21% of the stock is owned by company insiders.
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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