Mizuho Makes New $24.33M Investment in Southwest (LUV)
Snack-Sized Version:
Mizuho’s new investment in Southwest (LUV) totaled 750,000 shares. This position is valued at $24.33 million. The purchase gives Mizuho Markets Americas a 0.14% stake in the airline. This news comes from a recent 13F filing with the SEC. In addition, Southwest separately announced a $2.00 billion share buyback plan. The airline also declared a $0.18 quarterly dividend. This institutional activity follows recent insider buys at the company.
| Institutional Moves: At a Glance | |
|---|---|
| Firms | Mizuho bought a new $24.33M stake. Fort Washington and Gradient also increased positions. |
| Insider activity | Two directors also purchased shares recently, totaling over $145,000. |
| Capital returns | The company announced a $2.00 billion share buyback and a $0.18 quarterly dividend. |
| Holdings | Institutional investors and hedge funds now own 80.82% of the company’s stock. |
Source: Company investor relations; SEC filings.
Read the Full Meal:
Mizuho Markets Americas revealed a significant new investment in Southwest Airlines. The firm acquired 750,000 shares of LUV stock, a stake valued at $24.33 million. This information was disclosed in a 13F filing. This move matters because it shows institutional confidence. It also aligns with recent insider buying. Moreover, the airline’s board authorized a $2 billion share buyback. This signals they believe the stock is undervalued. For the airline sector, large institutional buys can signal a positive outlook on travel demand and operational stability.
Investor Confidence and Capital Returns
- Institutional holding: Mizuho established a new 0.14% stake. Other funds like Fort Washington and Gradient also added shares.
- Insider buying: Director Gregg Saretsky bought 3,345 shares. Director Sarah Feinberg also added 1,500 shares.
- Share buyback: Southwest’s board approved a large $2.00 billion share repurchase plan. This action often suggests leadership feels the stock is cheap.
- Dividend: The airline declared an $0.18 quarterly dividend. This provides a 2.2% annualized yield, though its payout ratio is high.
Quick links
- Official source: 13F Filing Data
- IR hub: Events & Presentations · Filings
- Our coverage: Southwest Airlines Unveils Upgraded 737 Max · Southwest Airlines News Hub · Latest: Southwest (LUV) Holds Investor Meeting Amid Mixed Outlook
Why this can matter for LUV holders
- Confidence signal: Large institutional buys, like Mizuho’s, can signal a belief in the stock’s long-term value.
- Insider alignment: Recent share purchases by two directors align their interests with shareholders. This is often seen as a positive sign.
- Capital return support: The $2 billion buyback and $0.18 dividend provide direct returns to investors. However, the high payout ratio warrants monitoring.
What to watch next
- Official filings: Investors can monitor all institutional ownership changes via the SEC’s EDGAR database.
- Next event: Southwest last reported earnings on February 6th. Check the IR calendar for the next quarterly update.
- Analyst consensus: Watch if other analysts update their ratings. The current consensus is “Reduce” with an average $33.38 price target.
Mini FAQ
What new investment did Southwest (LUV) receive?
Mizuho Markets Americas LLC bought 750,000 shares, a new stake worth $24.33 million.
Did Southwest insiders buy or sell stock?
Two directors recently bought LUV shares. Gregg Saretsky purchased 3,345 shares and Sarah Feinberg purchased 1,500 shares.
What is Southwest’s current dividend?
Southwest announced a quarterly dividend of $0.18 per share.