Primecap Management Co. CA Makes New $2.51 Billion Investment in Southwest Airlines Co. $LUV

Primecap Management Co. CA acquired a new stake in Southwest Airlines Co. (NYSE:LUV) in the 2nd quarter, HoldingsChannel.com reports. The firm acquired 48,797,725 shares of the airline’s stock, valued at approximately $2,509,179,000. Southwest Airlines makes up about 1.5% of Primecap Management Co. CA’s investment portfolio, making the stock its 15th largest position. Primecap Management Co. CA owned 0.10% of Southwest Airlines as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. MCF Advisors LLC boosted its stake in shares of Southwest Airlines by 28.5% in the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after buying an additional 203 shares during the last quarter. World Investment Advisors increased its position in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock valued at $843,000 after acquiring an additional 210 shares during the last quarter. Parkside Financial Bank & Trust lifted its holdings in Southwest Airlines by 7.5% during the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after acquiring an additional 213 shares during the period. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in Southwest Airlines by 1.5% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after acquiring an additional 235 shares during the period. Finally, Benjamin Edwards Inc. boosted its position in Southwest Airlines by 1.4% in the second quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock worth $806,000 after purchasing an additional 333 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on LUV shares. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. BMO Capital Markets boosted their price target on shares of Southwest Airlines from $58.50 to $60.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. Raymond James Financial reduced their price target on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a research report on Monday. Jefferies Financial Group raised their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a report on Wednesday, July 1st. Finally, Citigroup lowered their price objective on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a research report on Friday, July 24th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $49.01.

Southwest Airlines Stock Performance

NYSE:LUV opened at $40.87 on Wednesday. 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 business has a fifty day simple moving average of $47.04 and a two-hundred day simple moving average of $44.33. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a market capitalization of $19.99 billion, a P/E ratio of 25.07, a P/E/G ratio of 0.36 and a beta of 1.14.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The business’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.43 EPS. 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. On average, analysts expect that Southwest Airlines Co. will post 3.41 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $0.72 annualized dividend and a yield of 1.8%. Southwest Airlines’s dividend payout ratio is 44.17%.

About Southwest Airlines

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.