Pierre Breber, a director at Southwest Airlines (LUV), recently bought 10,000 shares. The buy increased his stake by 26%, and came to a total cost of $268,877.
Breber’s buy came a day after another director bought 7,500 shares, paying just under $199,000 to increase his position by 48%. Going further back, other company directors have been buyers since the past two years, but one major holder was a sizeable seller of shares in 2024.
Overall, Southwest Airlines insiders own 1.1% of shares.
The low-cost airliner is up 6% over the past year, slightly underperforming the overall market, and seeing a notable selloff amid rising economic uncertainty.
Over the last 12 months, Southwest grew revenues by a modest 1.6%, but didn’t see any earnings growth. Shares are valued about in-line with the overall market at 22 times earnings.
Action to take: After bouncing higher in recent sessions, shares are back just under $30, near their most-traded zone for much of the past year. Given current headlines and their impact on travel, investors should expect lackluster returns for now.
Today’s buyers can earn a 2.6% dividend yield, and could use tools like covered call writing to add to returns until a clearer trend emerges.
For traders, the June $30 calls, last trading for about $1.00, may have a little bit of upside in the coming weeks, likely in the low-double-digits.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.