Keep an eye on Southwest Airlines (SYM: LUV).
After running from about $25 to $29.70, the airline stock could fly even higher.
All on news Elliott Investment Management now owns 10% of the LUV common stock. Better, by next Monday, the investors and LUV will meet to discuss a new framework of potential changes, which Elliott Investment outlined in a letter to shareholders last week.
“In that letter, Elliott pointed to what it called ‘years of mismanagement’ by Executive Chairman Gary Kelly and CEO Bob Jordan that it said has kept the company from failing to live up to its potential. The letter calls for a ‘comprehensive solution—not just some hand-picked new directors beholden to current management and a few long-overdue initiatives,’” as highlighted by Barron’s.
“The process that we have seen work most effectively in such situations is the formation of a new board-level committee with a mandate to conduct a comprehensive business review and drive transformational change,” they added.
If you want to read more of what Elliott Investment Management had to say about the current situation at Southwest Airlines, you can find it here: https://strongersouthwest.com/wp-content/uploads/2024/08/Open-Letter-to-Southwest-Shareholders-August-26-2024.pdf
With hopeful changes to LUV on the way, the stock could easily push higher.
