Rhumbline Advisers Cuts Position in Southwest Airlines Co. $LUV

Rhumbline Advisers lowered its stake in shares of Southwest Airlines Co. (NYSE:LUV) by 3.1% during the third quarter, Holdings Channel reports. The institutional investor owned 1,363,075 shares of the airline’s stock after selling 43,577 shares during the period. Rhumbline Advisers’ holdings in Southwest Airlines were worth $43,496,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in LUV. Benjamin Edwards Inc. lifted its position in shares of Southwest Airlines by 1.4% during the 2nd quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock valued at $806,000 after acquiring an additional 333 shares during the period. GAMMA Investing LLC increased its stake in Southwest Airlines by 2.4% in the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline’s stock valued at $456,000 after purchasing an additional 341 shares in the last quarter. Valeo Financial Advisors LLC raised its holdings in Southwest Airlines by 3.3% during the third quarter. Valeo Financial Advisors LLC now owns 10,791 shares of the airline’s stock worth $344,000 after purchasing an additional 343 shares during the last quarter. Foundations Investment Advisors LLC boosted its position in Southwest Airlines by 6.1% during the second quarter. Foundations Investment Advisors LLC now owns 6,547 shares of the airline’s stock worth $212,000 after purchasing an additional 374 shares in the last quarter. Finally, Wallace Advisory Group LLC grew its holdings in Southwest Airlines by 3.6% in the second quarter. Wallace Advisory Group LLC now owns 11,050 shares of the airline’s stock valued at $371,000 after purchasing an additional 386 shares during the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Southwest Airlines

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

Southwest Airlines Stock Performance

Shares of NYSE LUV opened at $51.06 on Friday. The company has a 50-day simple moving average of $44.08 and a 200-day simple moving average of $36.34. 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 company has a market cap 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 Co. has a 12 month low of $23.82 and a 12 month high of $54.70.

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

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be given a $0.18 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. Southwest Airlines’s payout ratio is currently 85.71%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on LUV shares. Sanford C. Bernstein lifted their price target on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a research note on Thursday, November 20th. TD Cowen raised their target price on shares of Southwest Airlines from $42.00 to $50.00 and gave the company a “hold” rating in a report on Friday, January 30th. Seaport Research Partners lifted their target price on shares of Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. Evercore increased their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research report on Thursday, January 29th. Finally, Jefferies Financial Group raised their price objective on shares of Southwest Airlines from $45.00 to $48.00 and gave the stock a “hold” rating in a research note on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $46.92.

Southwest Airlines 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.