AlphaQuest LLC Cuts Stock Holdings in Southwest Airlines Co. $LUV

AlphaQuest LLC reduced its stake in Southwest Airlines Co. (NYSE:LUV) by 80.8% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,017 shares of the airline’s stock after selling 12,700 shares during the period. AlphaQuest LLC’s holdings in Southwest Airlines were worth $96,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. RWA Wealth Partners LLC acquired a new stake in shares of Southwest Airlines during the 2nd quarter worth about $1,652,000. Hussman Strategic Advisors Inc. acquired a new position in Southwest Airlines in the third quarter valued at approximately $2,010,000. Howard Capital Management Inc. increased its stake in Southwest Airlines by 8.3% in the second quarter. Howard Capital Management Inc. now owns 127,218 shares of the airline’s stock valued at $4,150,000 after purchasing an additional 9,739 shares during the last quarter. Gradient Investments LLC increased its stake in Southwest Airlines by 5.4% in the third quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock valued at $18,447,000 after purchasing an additional 29,665 shares during the last quarter. Finally, Rhumbline Advisers raised its holdings in Southwest Airlines by 30.1% during the second quarter. Rhumbline Advisers now owns 1,406,652 shares of the airline’s stock worth $45,632,000 after purchasing an additional 325,030 shares in the last quarter. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have recently issued reports on LUV. Bank of America upped their target price on shares of Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” 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 stock an “underperform” rating in a research note on Monday, December 8th. JPMorgan Chase & Co. upgraded shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and upped their price objective for the company from $36.00 to $60.00 in a research note on Friday, January 9th. Raymond James Financial raised their price objective on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Friday, December 19th. Finally, UBS Group lifted their target price on Southwest Airlines from $45.00 to $51.00 and gave the stock a “neutral” rating in a research report on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $46.92.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $51.06 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The business has a 50 day simple moving average of $44.08 and a 200-day simple moving average of $36.34. Southwest Airlines Co. has a 12 month low of $23.82 and a 12 month high of $54.70. The stock has a market capitalization of $25.09 billion, a PE ratio of 60.79, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15.

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

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 1.4%. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Southwest Airlines News Roundup

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

• Positive Sentiment: The company implemented assigned seating and introduced bag fees, which investors see as durable revenue levers that helped ignite a year-to-date rally after the January earnings call. Southwest Airlines Shares Jump 23% in 2026 After Launching Assigned Seating and Bag Fees
• Positive Sentiment: Zacks Research sharply raised EPS forecasts across multiple quarters and years (FY2026, FY2027, FY2028 and quarterly calls), and rates LUV a “Strong‑Buy” — suggesting analysts expect materially stronger profitability and cash flow going forward. This upward revision cycle is a key driver of bullish investor sentiment. MarketBeat LUV – Zacks Research coverage
• Positive Sentiment: Coverage pieces highlighting strong cash‑flow growth versus peers reinforce the narrative that Southwest’s structural changes (revenue initiatives + cost control) are translating into superior financial performance. Southwest Airlines (LUV): Massive Cash Flow Growth Vs. Sector Peers | 2-Minute Analysis
• Positive Sentiment: Product upgrades (Starlink in-flight WiFi and a cabin overhaul) could improve ancillary revenue, customer satisfaction and competitive positioning if rollout and monetization succeed. Investors view this as a potential medium-term positive catalyst. Southwest’s Starlink WiFi and Cabin Overhaul Might Change The Case For Investing In Southwest Airlines (LUV)
• Neutral Sentiment: Management announced upcoming board of director changes; governance shifts can be neutral-to-positive depending on experience and execution but are not an immediate revenue driver. Southwest Airlines Announces Upcoming Board of Directors Changes
• Neutral Sentiment: Some analysts remain mixed on the stock; divergent views imply upside is tied to execution of revenue initiatives and cost control. Analysts’ Opinions Are Mixed on These Industrial Goods Stocks
• Negative Sentiment: A shareholder‑rights law firm (Halper Sadeh) is soliciting contacts from Southwest shareholders, signaling potential litigation or scrutiny that could create legal costs, distraction, or reputational risk. Monitor filings for specifics. Halper Sadeh LLC Encourages Southwest Airlines Co. Shareholders to Contact the Firm

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.