Southwest Airlines Sees Unusually Large Options Volume (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) was the recipient of some unusual options trading activity on Wednesday. Stock traders purchased 26,202 put options on the company. This represents an increase of approximately 40% compared to the typical daily volume of 18,729 put options.

Southwest Airlines Stock Down 1.3 %

LUV stock opened at $33.94 on Friday. The company has a market cap of $20.11 billion, a price-to-earnings ratio of 47.13, a P/E/G ratio of 0.97 and a beta of 1.10. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92. The business’s 50-day moving average is $31.30 and its two-hundred day moving average is $31.50. Southwest Airlines has a fifty-two week low of $23.58 and a fifty-two week high of $36.12.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, January 30th. The airline reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.11. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%. As a group, analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 2.12%. The ex-dividend date is Wednesday, March 12th. Southwest Airlines’s dividend payout ratio is currently 100.00%.

Wall Street Analysts Forecast Growth

LUV has been the subject of a number of recent analyst reports. Morgan Stanley restated an “overweight” rating and set a $42.00 target price on shares of Southwest Airlines in a report on Wednesday, December 11th. Argus raised shares of Southwest Airlines from a “hold” rating to a “buy” rating and set a $35.00 target price for the company in a research report on Tuesday, February 11th. Bank of America reiterated an “underperform” rating and set a $31.00 price target (down previously from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. TD Cowen raised their price objective on shares of Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a report on Friday, December 6th. Finally, Melius upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a report on Thursday, March 20th. Five research analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $32.52.

Insider Buying and Selling at Southwest Airlines

In other Southwest Airlines news, Director C. David Cush purchased 5,000 shares of Southwest Airlines stock in a transaction that occurred on Wednesday, March 12th. The shares were bought at an average price of $30.03 per share, for a total transaction of $150,150.00. Following the acquisition, the director now directly owns 19,011 shares in the company, valued at approximately $570,900.33. This trade represents a 35.69 % increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently modified their holdings of the company. Kestra Investment Management LLC purchased a new position in shares of Southwest Airlines during the 4th quarter valued at $26,000. Raleigh Capital Management Inc. lifted its position in shares of Southwest Airlines by 186.7% in the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock valued at $30,000 after acquiring an additional 575 shares in the last quarter. Sanctuary Wealth Management L.L.C. boosted its stake in shares of Southwest Airlines by 196.3% in the fourth quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock worth $30,000 after acquiring an additional 589 shares during the period. TD Private Client Wealth LLC grew its position in shares of Southwest Airlines by 41.1% during the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock worth $35,000 after purchasing an additional 345 shares in the last quarter. Finally, VSM Wealth Advisory LLC bought a new stake in Southwest Airlines during the 4th quarter valued at approximately $42,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.