Olstein Capital Management L.P. Cuts Holdings in Southwest Airlines Co. $LUV

Olstein Capital Management L.P. decreased its holdings in Southwest Airlines Co. (NYSE:LUV) by 23.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 127,000 shares of the airline’s stock after selling 39,000 shares during the period. Olstein Capital Management L.P.’s holdings in Southwest Airlines were worth $5,249,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently bought and sold shares of the stock. Cibc World Market Inc. boosted its position in Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock valued at $61,140,000 after purchasing an additional 214,092 shares in the last quarter. Hussman Strategic Advisors Inc. bought a new position in Southwest Airlines in the third quarter worth about $2,010,000. SG Americas Securities LLC raised its holdings in Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. Nordea Investment Management AB purchased a new position in shares of Southwest Airlines in the 4th quarter worth approximately $31,968,000. Finally, Altfest L J & Co. Inc. purchased a new position in Southwest Airlines in the fourth quarter worth $1,403,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines Trading Down 0.4%

NYSE LUV opened at $41.35 on Friday. Southwest Airlines Co. has a 12-month low of $28.98 and a 12-month high of $55.11. The company has a fifty day simple moving average of $40.90 and a two-hundred day simple moving average of $40.61. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. The stock has a market cap of $20.21 billion, a P/E ratio of 26.68, a P/E/G ratio of 0.44 and a beta of 1.12.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.45. The firm had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, analysts forecast that Southwest Airlines Co. will post 2.9 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.7%. The ex-dividend date is Thursday, June 11th. Southwest Airlines’s payout ratio is presently 46.45%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Zacks Research cut Southwest Airlines from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 11th. Morgan Stanley upped their target price on Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, January 30th. Susquehanna decreased their price target on Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Finally, The Goldman Sachs Group lowered their price target on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $44.11.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Board approved a cash dividend of $0.18 per share (record June 11; payable July 2) — a return of capital that supports income-oriented holders and signals board confidence in cash flow. Article Title
• Positive Sentiment: Southwest was ranked #1 by J.D. Power for customer satisfaction among economy travelers for the fifth straight year — a reputational win that supports demand, retention and potential pricing power. Article Title
• Neutral Sentiment: Feature on durable, income-oriented investing referencing Buffett’s “kamikaze pricing” is general market color on investor preferences (not specific to Southwest fundamentals). Useful context for income-seeking shareholders but unlikely to move LUV alone. Article Title
• Negative Sentiment: Zacks cut Q4 2026/Q2 2027/Q4 2027 and FY2027 EPS estimates and maintained a “Hold” rating — downward revisions to analyst forecasts can pressure the stock multiple and signal weaker near-term profit expectations. Article Title
• Negative Sentiment: U.S. airlines’ March jet fuel costs jumped >50% month-over-month after the Iran conflict, adding meaningful unplanned expense for carriers; higher fuel costs compress margins unless passed to consumers. Article Title
• Negative Sentiment: Industry-wide schedule cuts (75,000+ summer flights removed) reflect airlines trimming capacity in response to soaring fuel prices — potential revenue disruption, ticketing churn, and operational complexity for carriers including Southwest. Article Title

Southwest Airlines Company Profile

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.