Southwest Airlines Co. (NYSE:LUV) Short Interest Update

Southwest Airlines Co. (NYSE:LUV) was the recipient of a large decrease in short interest in February. As of February 13th, there was short interest totaling 23,812,123 shares, a decrease of 22.6% from the January 29th total of 30,747,629 shares. Approximately 4.9% of the shares of the company are short sold. Based on an average trading volume of 10,863,950 shares, the short-interest ratio is currently 2.2 days. Based on an average trading volume of 10,863,950 shares, the short-interest ratio is currently 2.2 days. Approximately 4.9% of the shares of the company are short sold.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. GHP Investment Advisors Inc. acquired a new stake in Southwest Airlines in the 4th quarter worth about $26,000. Entrust Financial LLC bought a new position in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Optima Capital LLC bought a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $27,000. Finally, Lodestone Wealth Management LLC acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $29,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have recently issued reports on LUV shares. The Goldman Sachs Group boosted their price objective on Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research report on Friday, January 30th. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Citigroup lifted their target price on shares of Southwest Airlines from $44.00 to $54.00 in a research report on Tuesday, February 3rd. Finally, BNP Paribas Exane increased their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research report on Monday, December 8th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus target price of $49.03.

Southwest Airlines Stock Down 1.2%

Shares of Southwest Airlines stock traded down $0.60 on Tuesday, reaching $47.67. 12,373,339 shares of the company were exchanged, compared to its average volume of 9,878,108. The company has a market capitalization of $23.42 billion, a price-to-earnings ratio of 56.75, a PEG ratio of 0.34 and a beta of 1.10. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11. The company has a 50-day moving average of $46.54 and a 200 day moving average of $38.17.

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

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s payout ratio is 85.71%.

Key Headlines Impacting Southwest Airlines

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: The airline announced a major cabin overhaul — assigned seating, a basic economy tier, extra‑legroom options and plans to install SpaceX Starlink on 300+ aircraft by end of 2026 — moves that can increase ancillary revenue and yield per passenger if adopted without damaging core brand appeal. Southwest Cabin Shakeup Tests Revenue Growth And Brand Loyalty Story
• Positive Sentiment: Analyst and media pieces highlight strong upside: LUV shares have rallied over the past year on rising earnings estimates, partnerships and share buybacks — factors that support continued investor optimism about future returns. Here’s Why Investors Should Bet on Southwest Airlines Stock Now
• Neutral Sentiment: Market consensus from analysts is currently a “Hold,” reflecting uncertainty between the company’s improving earnings trajectory and potential execution/brand risks from its product shift. Southwest Airlines Receives Consensus Recommendation of “Hold”
• Neutral Sentiment: Competitive capacity increases in Europe (Ryanair boosting routes and frequencies at Alicante) are noteworthy for international leisure markets but have limited direct short‑term impact on Southwest’s largely U.S. domestic network. Monitor capacity and pricing trends as leisure demand shifts. RYAAY Expands Alicante Presence With New Routes and Capacity Expansion
• Negative Sentiment: Escalation in the Middle East has prompted airlines to cancel flights and issue waivers, and the conflict has pressured airline stocks broadly; near‑term demand and route disruptions raise revenue risk for carriers, including spillover effects on capacity and fuel/operational costs. Airlines cancel flights, issue travel waivers over Middle East unrest
• Negative Sentiment: Coverage notes sectorwide declines after Iran‑related strikes suspended key transit corridors — a macro shock that can depress near‑term demand and drive volatility in LUV and peers. Airline Stocks Dive as Iran Strikes Suspend Key Corridors

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.