Mitsubishi UFJ Asset Management Co. Ltd. Decreases Stake in Southwest Airlines Co. $LUV

Mitsubishi UFJ Asset Management Co. Ltd. cut its holdings in shares of Southwest Airlines Co. (NYSE:LUV) by 6.9% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 544,511 shares of the airline’s stock after selling 40,157 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd.’s holdings in Southwest Airlines were worth $17,375,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership lifted its stake in Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock valued at $328,305,000 after acquiring an additional 9,716,160 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Southwest Airlines by 13.6% during the third quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after purchasing an additional 1,459,235 shares during the last quarter. Norges Bank bought a new position in Southwest Airlines during the second quarter valued at approximately $41,663,000. Crake Asset Management LLP bought a new position in Southwest Airlines during the second quarter valued at approximately $33,738,000. Finally, Canada Pension Plan Investment Board boosted its holdings in Southwest Airlines by 315.3% in the second quarter. Canada Pension Plan Investment Board now owns 1,247,837 shares of the airline’s stock worth $40,480,000 after purchasing an additional 947,346 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on LUV. Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. The Goldman Sachs Group lifted their price objective on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a report on Friday, January 30th. Sanford C. Bernstein lifted their price objective on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a report on Thursday, November 20th. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Finally, Wells Fargo & Company boosted their price target on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $49.03.

Southwest Airlines Stock Performance

NYSE:LUV opened at $49.20 on Monday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The stock has a 50-day simple moving average of $46.30 and a two-hundred day simple moving average of $37.93. The firm has a market capitalization of $24.17 billion, a PE ratio of 58.57, a P/E/G ratio of 0.35 and a beta of 1.10. Southwest Airlines Co. has a 52-week low of $23.82 and a 52-week high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.56 EPS. 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 EPS for the current year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be paid 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 1.5%. Southwest Airlines’s dividend payout ratio is 85.71%.

Key Southwest Airlines News

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

• Positive Sentiment: Management’s overhaul and 2026 guidance are supporting investor confidence — coverage notes the transformation and clearer FY‑2026 targets that helped lift sentiment. A Look At Southwest Airlines (LUV) Valuation As Its Overhaul And 2026 Guidance Boost Investor Confidence
• Positive Sentiment: Product changes (assigned seating, extra‑legroom options, expanded distribution, free Wi‑Fi for Rapid Rewards) plus a large 2025 shareholder return (~$2.9B) are reframing Southwest from a low‑cost carrier to a differentiated, revenue‑enhancing operator. Is Southwest’s Bold Shift To Assigned Seating And Perks Altering The Investment Case For LUV?
• Positive Sentiment: TD Cowen upgraded LUV from Hold to Buy with a $66 price target, signaling analyst optimism and adding potential upside from improved sentiment and coverage. Benzinga note on TD Cowen upgrade
• Positive Sentiment: Short interest dropped meaningfully in February (≈22.6% decline), reducing immediate short‑pressure and indicating some bearish positions have been covered. (Market data summarized publicly.)
• Neutral Sentiment: Recent earnings showed a modest EPS beat but a revenue miss; market reaction since the report has been positive overall (LUV up ~5% since earnings), but investors are now parsing forward guidance and execution risks. Why Is Southwest (LUV) Up 5% Since Last Earnings Report?
• Neutral Sentiment: Analysts and commentators are debating valuation — some see LUV as still attractive given execution and margin upside, while others flag stretched momentum after the recent run. Are Investors Undervaluing Southwest Airlines (LUV) Right Now?
• Negative Sentiment: Sector headwinds: rising crude oil and broader airline weakness (notably United and Delta share drops) are pressuring airline multiples and can offset Southwest’s company‑level gains. United Airlines, Delta Stocks Fall. Why Airlines Are Getting Crushed.
• Negative Sentiment: Investor caution remains because higher industry labor costs and legacy carriers’ balance‑sheet issues keep the sector sensitive to macro shocks, which can trigger short‑term pullbacks even for stronger operators. AAL Benefits From Improved Air-Travel Demand Amid High Costs

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.