Shake-Up Alert: 40 Companies Facing Activist Pressure

25. Elliot Management at Southwest Airlines Co. (NYSE:LUV)

Stock Return: -3.7%

S&P 500 Return: -0.7%

Investment date: 09/06/2024

Number of hedge funds holding stakes: 33

Southwest Airlines Co. (NYSE:LUV) is one of the largest companies in the world, providing scheduled air transportation services across the globe. The company has been under pressure recently, with its stock plunging amid deteriorating profit margins in the last four years.

Elliott Investment Management has since accumulated significant stakes and is pushing for strategic changes to reinvigorate growth. The activist investor is going for the ousting of current CEO Bob Jordan and Chairman Gary Kelly. The hedge fund is also calling for a business review.

Southwest Airlines Co. (NYSE:LUV) has implemented measures to protect its interests. The airline implemented a strategy known as a poison pill, which would go into effect if any shareholder gained a stake exceeding 12.5%, thereby restricting Elliott’s capacity to gain further influence.

According to the Insider Monkey Database, the stock is down by 7.14% for the year, with the number of hedge funds holding stakes in Southwest Airlines Co. (NYSE:LUV) increasing to 33 from 27 as of the end of 2023.