Shell Asset Management Co. Maintains Stake in Southwest Airlines Company (NYSE:LUV)

Shell Asset Management Co. continued to hold its position in Southwest Airlines Company (NYSE:LUV) during the second quarter, Holdings Channel reports. The fund owned 18,184 shares of the airline’s stock at the end of the second quarter. Shell Asset Management Co.’s holdings in Southwest Airlines were worth $1,130,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Cornerstone Advisors Inc. increased its position in Southwest Airlines by 28.2% in the second quarter. Cornerstone Advisors Inc. now owns 4,112 shares of the airline’s stock valued at $256,000 after buying an additional 904 shares during the last quarter. Boston Advisors LLC increased its position in Southwest Airlines by 13.1% in the second quarter. Boston Advisors LLC now owns 51,610 shares of the airline’s stock valued at $3,207,000 after buying an additional 5,972 shares during the last quarter. ING Groep NV increased its position in Southwest Airlines by 120.4% in the second quarter. ING Groep NV now owns 34,723 shares of the airline’s stock valued at $2,158,000 after buying an additional 18,965 shares during the last quarter. Russell Investments Group Ltd. increased its position in Southwest Airlines by 11.0% in the second quarter. Russell Investments Group Ltd. now owns 858,990 shares of the airline’s stock valued at $53,377,000 after buying an additional 84,876 shares during the last quarter. Finally, PGGM Investments increased its position in Southwest Airlines by 412.0% in the second quarter. PGGM Investments now owns 516,329 shares of the airline’s stock valued at $32,085,000 after buying an additional 415,489 shares during the last quarter. 80.34% of the stock is owned by hedge funds and other institutional investors.

Shares of Southwest Airlines Company (LUV) opened at 56.58 on Monday. Southwest Airlines Company has a 52-week low of $35.43 and a 52-week high of $64.39. The firm has a market capitalization of $33.87 billion, a PE ratio of 17.35 and a beta of 1.26. The stock’s 50 day moving average is $60.75 and its 200 day moving average is $57.04.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Thursday, July 27th. The airline reported $1.24 EPS for the quarter, beating the Zacks’ consensus estimate of $1.20 by $0.04. Southwest Airlines had a net margin of 9.63% and a return on equity of 26.07%. The company had revenue of $5.74 billion during the quarter, compared to analyst estimates of $5.73 billion. During the same period in the prior year, the business posted $1.19 EPS. The firm’s revenue was up 6.7% compared to the same quarter last year. On average, equities research analysts forecast that Southwest Airlines Company will post $3.80 EPS for the current year.

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. This represents a $0.50 dividend on an annualized basis and a yield of 0.88%. Southwest Airlines’s dividend payout ratio is currently 15.34%.

Southwest Airlines declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 17th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the airline to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Several equities analysts have recently issued reports on the stock. Zacks Investment Research downgraded shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Tuesday, August 1st. BidaskClub downgraded shares of Southwest Airlines from a “hold” rating to a “sell” rating in a research note on Sunday, July 30th. Cowen and Company reaffirmed a “buy” rating and set a $67.00 price target on shares of Southwest Airlines in a research note on Friday, July 28th. Vetr raised shares of Southwest Airlines from a “buy” rating to a “strong-buy” rating and set a $64.53 price target for the company in a research note on Thursday, July 27th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $70.00 price target on shares of Southwest Airlines in a research note on Thursday, July 13th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $65.78.

In related news, EVP Jeff Lamb sold 19,800 shares of the company’s stock in a transaction on Thursday, May 25th. The shares were sold at an average price of $61.00, for a total transaction of $1,207,800.00. Following the completion of the sale, the executive vice president now directly owns 92,468 shares in the company, valued at approximately $5,640,548. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Tammy Romo sold 8,322 shares of the company’s stock in a transaction on Tuesday, May 23rd. The shares were sold at an average price of $59.15, for a total transaction of $492,246.30. Following the sale, the chief financial officer now owns 87,387 shares of the company’s stock, valued at $5,168,941.05. The disclosure for this sale can be found here. Insiders have sold a total of 118,740 shares of company stock valued at $6,923,568 over the last quarter. 0.21% of the stock is currently 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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