Southwest Airlines Co. (NYSE:LUV) Sees Significant Increase in Short Interest

Southwest Airlines Co. (NYSE:LUV) saw a significant increase in short interest during the month of April. As of April 15th, there was short interest totalling 19,420,000 shares, an increase of 20.6% from the March 31st total of 16,100,000 shares. Based on an average daily volume of 8,280,000 shares, the days-to-cover ratio is currently 2.3 days.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Deutsche Bank Aktiengesellschaft raised Southwest Airlines from a “hold” rating to a “buy” rating and raised their target price for the stock from $28.00 to $42.00 in a report on Tuesday, February 20th. UBS Group began coverage on shares of Southwest Airlines in a research note on Wednesday, March 20th. They issued a “buy” rating and a $36.00 price target on the stock. JPMorgan Chase & Co. lifted their price target on Southwest Airlines from $24.00 to $29.00 and gave the stock a “neutral” rating in a report on Friday, January 26th. TD Cowen decreased their target price on shares of Southwest Airlines from $26.00 to $25.00 and set a “hold” rating on the stock in a research report on Friday, April 26th. Finally, Argus raised Southwest Airlines from a “hold” rating to a “buy” rating and set a $40.00 target price on the stock in a research report on Tuesday, March 12th. Five research analysts have rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, Southwest Airlines currently has an average rating of “Hold” and an average target price of $30.59.

Southwest Airlines Price Performance

NYSE:LUV opened at $25.94 on Wednesday. The firm has a market cap of $15.52 billion, a price-to-earnings ratio of 41.17, a price-to-earnings-growth ratio of 1.28 and a beta of 1.15. The company has a current ratio of 1.09, a quick ratio of 1.02 and a debt-to-equity ratio of 0.78. Southwest Airlines has a 12-month low of $21.91 and a 12-month high of $39.53. The company’s 50-day moving average is $30.04 and its two-hundred day moving average is $28.58.

Southwest Airlines (NYSE:LUV) last released its earnings results on Thursday, April 25th. The airline reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.34) by ($0.02). Southwest Airlines had a net margin of 1.59% and a return on equity of 8.91%. The business had revenue of $6.33 billion during the quarter, compared to analyst estimates of $6.42 billion. During the same quarter in the previous year, the company posted ($0.27) earnings per share. The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. Research analysts expect that Southwest Airlines will post 1.18 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of LUV. Hexagon Capital Partners LLC boosted its holdings in shares of Southwest Airlines by 374.0% in the 4th quarter. Hexagon Capital Partners LLC now owns 858 shares of the airline’s stock valued at $25,000 after purchasing an additional 677 shares during the last quarter. Capital Advisors Ltd. LLC grew its position in Southwest Airlines by 82.8% during the fourth quarter. Capital Advisors Ltd. LLC now owns 914 shares of the airline’s stock valued at $26,000 after acquiring an additional 414 shares during the period. First Horizon Advisors Inc. acquired a new stake in Southwest Airlines during the fourth quarter worth about $29,000. ICA Group Wealth Management LLC purchased a new position in shares of Southwest Airlines in the 4th quarter worth about $29,000. Finally, Pineridge Advisors LLC purchased a new stake in shares of Southwest Airlines during the 4th quarter worth about $32,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

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.