Heartland Advisors Inc. Decreases Stake in Southwest Airlines Co. $LUV

Heartland Advisors Inc. reduced its holdings in shares of Southwest Airlines Co. (NYSE:LUV) by 39.8% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 52,008 shares of the airline’s stock after selling 34,443 shares during the quarter. Heartland Advisors Inc.’s holdings in Southwest Airlines were worth $1,660,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently bought and sold shares of the company. AQR Capital Management LLC boosted its holdings in shares of Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after acquiring an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after purchasing an additional 3,141 shares during the period. Empowered Funds LLC boosted its holdings in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after purchasing an additional 527 shares during the last quarter. CWM LLC grew its position in Southwest Airlines by 16.8% in the 2nd quarter. CWM LLC now owns 27,141 shares of the airline’s stock worth $880,000 after purchasing an additional 3,906 shares during the period. Finally, Sequoia Financial Advisors LLC raised its stake in Southwest Airlines by 13.6% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 14,031 shares of the airline’s stock valued at $455,000 after buying an additional 1,682 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines News Roundup

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

• Positive Sentiment: UBS upgraded LUV from Neutral to Buy and raised its 12‑month price target to $73 (from $51), citing meaningful earnings upside from the carrier’s seating and fee initiatives — a direct driver of today’s rally. UBS upgrade report
• Positive Sentiment: Southwest announced an overhaul introducing assigned seats, checked‑bag fees, extra‑legroom options and plans for Starlink Wi‑Fi — changes designed to lift ancillary revenue and margins if executed well. Overhaul details
• Positive Sentiment: Analysts and commentary (Zacks and others) point to upward earnings‑estimate revisions and improving fundamentals that support further share gains if execution continues. Zacks analysis
• Neutral Sentiment: Market context: coverage pieces and pre‑market movers stories (Benzinga/MSN) amplified the reaction, so some of today’s move reflects headlines and momentum rather than fresh company results. Market movers writeup
• Negative Sentiment: Risks include execution and customer reaction to fees, plus Southwest’s recent quarterly revenue slightly missed consensus and margins remain thin — meaning upside depends on successful rollout and mix improvement. Notes on risks and results

Southwest Airlines Stock Up 6.0%

LUV opened at $54.18 on Wednesday. The firm has a 50-day simple moving average of $44.66 and a two-hundred day simple moving average of $36.73. Southwest Airlines Co. has a 52 week low of $23.82 and a 52 week high of $55.11. The company has a market capitalization of $26.62 billion, a PE ratio of 64.50, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last issued its 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 return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the previous year, the firm posted $0.56 earnings per share. The business’s 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. Analysts forecast that Southwest Airlines Co. will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed 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. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.3%. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Jefferies Financial Group boosted their price target on Southwest Airlines from $45.00 to $48.00 and gave the company a “hold” rating in a research note on Monday, February 2nd. The Goldman Sachs Group upped their price target on shares of Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research report on Friday, January 30th. Evercore raised their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a report on Thursday, January 29th. Finally, Citigroup upped their target price on shares of Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average target price of $48.14.

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.