Southwest Airlines Co. (NYSE:LUV) Short Interest Up 38.7% in January

Southwest Airlines Co. (NYSE:LUV) was the recipient of a large increase in short interest in the month of January. As of January 30th, there was short interest totaling 30,747,629 shares, an increase of 38.7% from the January 15th total of 22,175,818 shares. Currently, 6.3% of the shares of the company are short sold. Based on an average daily volume of 11,960,153 shares, the days-to-cover ratio is currently 2.6 days. Based on an average daily volume of 11,960,153 shares, the days-to-cover ratio is currently 2.6 days. Currently, 6.3% of the shares of the company are short sold.

Southwest Airlines Trading Up 6.0%

NYSE LUV traded up $3.05 on Tuesday, hitting $54.16. 4,186,221 shares of the stock were exchanged, compared to its average volume of 10,210,111. The company’s 50-day moving average price is $44.34 and its two-hundred day moving average price is $36.56. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $54.70. The company has a market capitalization of $26.61 billion, a price-to-earnings ratio of 64.47, a P/E/G ratio of 0.36 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.Southwest Airlines’s revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.56 earnings per share. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Research analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 1.3%. Southwest Airlines’s payout ratio is presently 85.71%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on LUV. The Goldman Sachs Group raised their price target on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a report on Friday, January 30th. BNP Paribas Exane lifted their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. Susquehanna lifted their price objective on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a report on Tuesday, February 3rd. Zacks Research raised Southwest Airlines from a “hold” rating to a “strong-buy” rating in a report on Friday, January 30th. Finally, Seaport Research Partners lifted their price target on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $48.14.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently modified their holdings of the stock. Franklin Resources Inc. grew its holdings in Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after purchasing an additional 2,626,853 shares during the last quarter. Ameriprise Financial Inc. grew its stake in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in Southwest Airlines by 13.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock worth $389,879,000 after acquiring an additional 1,459,235 shares during the period. Artisan Partners Limited Partnership raised its holdings in Southwest Airlines by 0.9% in the 2nd quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after acquiring an additional 98,290 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its position in Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after acquiring an additional 9,716,160 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.