Stock Traders Purchase Large Volume of Call Options on Southwest Airlines (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV - Get Free Report) saw some unusual options trading on Thursday. Traders acquired 30,620 call options on the stock. This is an increase of 71% compared to the typical volume of 17,925 call options.

Southwest Airlines Price Performance

LUV stock traded down $0.13 during midday trading on Monday, reaching $34.70. 3,967,384 shares of the company's stock traded hands, compared to its average volume of 10,723,843. The company has a 50-day simple moving average of $31.16 and a two-hundred day simple moving average of $31.39. The company has a quick ratio of 0.85, a current ratio of 0.92 and a debt-to-equity ratio of 0.49. Southwest Airlines has a 1-year low of $23.58 and a 1-year high of $36.12. The company has a market cap of $20.57 billion, a price-to-earnings ratio of 48.20, a PEG ratio of 0.97 and a beta of 1.10.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%. On average, analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Stockholders of record on Wednesday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date is Wednesday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.07%. Southwest Airlines's payout ratio is currently 100.00%.

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Wall Street Analyst Weigh In

LUV has been the subject of several research reports. TD Cowen increased their target price on shares of Southwest Airlines from $25.00 to $28.00 and gave the company a "hold" rating in a research note on Friday, December 6th. Morgan Stanley reiterated an "overweight" rating and issued a $42.00 price objective on shares of Southwest Airlines in a research report on Wednesday, December 11th. JPMorgan Chase & Co. boosted their price objective on Southwest Airlines from $25.00 to $30.00 and gave the company an "underweight" rating in a research report on Tuesday, March 18th. Melius raised Southwest Airlines from a "sell" rating to a "hold" rating in a research report on Thursday. Finally, UBS Group raised shares of Southwest Airlines from a "sell" rating to a "neutral" rating and boosted their price target for the company from $29.00 to $36.00 in a report on Thursday. Five analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, Southwest Airlines currently has an average rating of "Hold" and a consensus target price of $32.52.

Insider Activity

In related news, Director C. David Cush bought 5,000 shares of the business's stock in a transaction that occurred on Wednesday, March 12th. The stock was purchased at an average cost of $30.03 per share, for a total transaction of $150,150.00. Following the purchase, the director now directly owns 19,011 shares in the company, valued at $570,900.33. This trade represents a 35.69 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Southwest Airlines

Large investors have recently made changes to their positions in the company. Kestra Investment Management LLC bought a new stake in Southwest Airlines during the 4th quarter worth about $26,000. Raleigh Capital Management Inc. raised its stake in shares of Southwest Airlines by 186.7% during the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline's stock worth $30,000 after buying an additional 575 shares during the last quarter. Sanctuary Wealth Management L.L.C. raised its stake in shares of Southwest Airlines by 196.3% during the fourth quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline's stock worth $30,000 after buying an additional 589 shares during the last quarter. TD Private Client Wealth LLC boosted its stake in Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline's stock valued at $35,000 after acquiring an additional 345 shares during the last quarter. Finally, VSM Wealth Advisory LLC bought a new position in Southwest Airlines in the fourth quarter valued at approximately $42,000. Institutional investors and hedge funds own 80.82% of the company's stock.

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.