Southwest Airlines Co. (NYSE:LUV) Sees Large Decline in Short Interest

Southwest Airlines Co. (NYSE:LUV - Get Free Report) saw a large decline in short interest during the month of March. As of March 15th, there was short interest totalling 35,280,000 shares, a decline of 15.3% from the February 28th total of 41,650,000 shares. Based on an average daily trading volume, of 10,220,000 shares, the days-to-cover ratio is presently 3.5 days. Currently, 6.0% of the shares of the stock are short sold.

Wall Street Analyst Weigh In

Several analysts have weighed in on LUV shares. Melius Research raised shares of Southwest Airlines from a "sell" rating to a "hold" rating and boosted their price target for the stock from $28.00 to $34.00 in a research note on Thursday, March 20th. Melius raised Southwest Airlines from a "sell" rating to a "hold" rating in a research note on Thursday, March 20th. Barclays raised their price target on Southwest Airlines from $32.00 to $35.00 and gave the stock an "equal weight" rating in a research report on Friday, December 6th. UBS Group upgraded Southwest Airlines from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $29.00 to $36.00 in a research report on Thursday, March 20th. Finally, Morgan Stanley restated an "overweight" rating and issued a $42.00 target price on shares of Southwest Airlines in a report on Wednesday, December 11th. Six equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $32.43.

Southwest Airlines Stock Down 10.6 %

Shares of LUV stock traded down $3.07 during midday trading on Friday, reaching $25.79. 23,110,025 shares of the stock were exchanged, compared to its average volume of 9,658,239. The firm has a market cap of $15.29 billion, a PE ratio of 35.82, a price-to-earnings-growth ratio of 0.97 and a beta of 0.94. The company has a current ratio of 0.92, a quick ratio of 0.85 and a debt-to-equity ratio of 0.49. The company's 50 day moving average is $31.13 and its two-hundred day moving average is $31.60. Southwest Airlines has a 1 year low of $23.58 and a 1 year high of $36.12.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. Southwest Airlines had a return on equity of 5.77% and a net margin of 1.69%. On average, equities research analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.79%. The ex-dividend date was Wednesday, March 12th. Southwest Airlines's dividend payout ratio is 100.00%.

Insider Buying and Selling

In other Southwest Airlines news, Director C. David Cush purchased 5,000 shares of the firm's stock in a transaction on Wednesday, March 12th. The shares were purchased at an average cost of $30.03 per share, with a total value of $150,150.00. Following the completion of the purchase, the director now owns 19,011 shares of the company's stock, valued at $570,900.33. The trade was a 35.69 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Southwest Airlines

A number of hedge funds have recently made changes to their positions in the stock. Kestra Investment Management LLC bought a new position in shares of Southwest Airlines during the fourth quarter valued at $26,000. Raleigh Capital Management Inc. grew its position in Southwest Airlines by 186.7% during the 4th quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline's stock valued at $30,000 after purchasing an additional 575 shares during the last quarter. Sanctuary Wealth Management L.L.C. increased its stake in Southwest Airlines by 196.3% during the 4th quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline's stock valued at $30,000 after purchasing an additional 589 shares in the last quarter. TD Private Client Wealth LLC raised its holdings in Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline's stock worth $35,000 after buying an additional 345 shares during the last quarter. Finally, VSM Wealth Advisory LLC bought a new position in shares of Southwest Airlines in the fourth quarter worth approximately $42,000. 80.82% of the stock is owned by 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.