Tdam USA Inc. Takes Position in Southwest Airlines Company (LUV)
Tdam USA Inc. purchased a new stake in Southwest Airlines Company (NYSE:LUV) during the second quarter, Holdings Channel reports. The institutional investor purchased 3,531 shares of the airline’s stock, valued at approximately $218,000.
A number of other hedge funds and other institutional investors have also modified their holdings of the company. Deschutes Portfolio Strategy LLC acquired a new position in shares of Southwest Airlines during the first quarter valued at approximately $283,000. Nisa Investment Advisors LLC increased its position in shares of Southwest Airlines by 5.3% in the first quarter. Nisa Investment Advisors LLC now owns 272,607 shares of the airline’s stock valued at $14,654,000 after buying an additional 13,603 shares in the last quarter. Boston Advisors LLC acquired a new position in shares of Southwest Airlines during the first quarter valued at approximately $2,454,000. DnB Asset Management AS acquired a new position in shares of Southwest Airlines during the first quarter valued at approximately $697,000. Finally, Palisade Capital Management LLC NJ acquired a new position in shares of Southwest Airlines during the first quarter valued at approximately $269,000. 80.34% of the stock is currently owned by institutional investors.
Shares of Southwest Airlines Company (LUV) opened at 54.01 on Friday. The firm has a 50-day moving average price of $59.77 and a 200-day moving average price of $57.15. The company has a market capitalization of $32.33 billion, a PE ratio of 16.56 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.
Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Thursday, July 27th. The airline reported $1.24 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.20 by $0.04. The business had revenue of $5.74 billion during the quarter, compared to analysts’ expectations of $5.73 billion. Southwest Airlines had a return on equity of 26.07% and a net margin of 9.63%. The firm’s revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period last year, the firm posted $1.19 EPS. On average, equities research analysts predict that Southwest Airlines Company will post $3.80 EPS for the current year.
Southwest Airlines declared that its board has approved a share buyback program on Wednesday, May 17th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the airline to reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
The company also recently declared a quarterly dividend, which will be paid on Thursday, September 14th. Investors of record on Thursday, August 24th will be issued a dividend of $0.125 per share. The ex-dividend date of this dividend is Tuesday, August 22nd. This represents a $0.50 annualized dividend and a yield of 0.93%. Southwest Airlines’s payout ratio is currently 15.34%.
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Several research analysts have commented on the company. Wolfe Research downgraded Southwest Airlines from an “outperform” rating to a “market perform” rating and set a $63.00 price target on the stock. in a research report on Monday, July 10th. They noted that the move was a valuation call. Morgan Stanley reaffirmed an “overweight” rating and issued a $66.00 price target (up from $65.00) on shares of Southwest Airlines in a research report on Monday, July 10th. BidaskClub downgraded Southwest Airlines from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 12th. Zacks Investment Research raised Southwest Airlines from a “hold” rating to a “buy” rating and set a $70.00 price target on the stock in a research report on Tuesday, July 4th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $70.00 price target on shares of Southwest Airlines in a research report on Thursday, July 13th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $65.78.
In other Southwest Airlines news, CFO Tammy Romo sold 8,322 shares of the firm’s stock in a transaction on Tuesday, May 23rd. The stock was sold at an average price of $59.15, for a total transaction of $492,246.30. Following the transaction, the chief financial officer now owns 87,387 shares in the company, valued at approximately $5,168,941.05. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Chairman Gary C. Kelly sold 51,000 shares of the firm’s stock in a transaction on Wednesday, May 17th. The stock was sold at an average price of $57.06, for a total value of $2,910,060.00. Following the transaction, the chairman now owns 556,808 shares in the company, valued at approximately $31,771,464.48. The disclosure for this sale can be found here. Over the last three months, insiders have sold 118,740 shares of company stock valued at $6,923,568. 0.21% of the stock is currently owned by 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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