Southwest Airlines Co. (NYSE:LUV) Short Interest Up 38.7% in January

Southwest Airlines Co. (NYSE:LUV) saw a large increase in short interest in the month of January. As of January 30th, there was short interest totaling 30,747,629 shares, an increase of 38.7% from the January 15th total of 22,175,818 shares. Currently, 6.3% of the company’s shares are sold short. Based on an average daily volume of 11,960,153 shares, the days-to-cover ratio is presently 2.6 days. Based on an average daily volume of 11,960,153 shares, the days-to-cover ratio is presently 2.6 days. Currently, 6.3% of the company’s shares are sold short.

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 Trading Up 0.5%

Shares of Southwest Airlines stock traded up $0.23 during midday trading on Friday, reaching $51.06. 9,161,857 shares of the company’s stock traded hands, compared to its average volume of 10,953,950. The stock has a 50 day moving average of $44.08 and a 200-day moving average of $36.38. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $54.70. 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. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data 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. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. During the same period in the previous year, the firm earned $0.56 EPS. The company’s quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, equities analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LUV. AQR Capital Management LLC raised its holdings in Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after purchasing an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Southwest Airlines by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after buying an additional 3,141 shares in the last quarter. Empowered Funds LLC raised its position in Southwest Airlines by 7.6% in the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after buying an additional 527 shares during the last quarter. Janney Montgomery Scott LLC lifted its stake in Southwest Airlines by 11.0% during the 2nd quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock valued at $373,000 after acquiring an additional 1,136 shares during the period. Finally, CWM LLC boosted its holdings in shares of Southwest Airlines by 16.8% during the 2nd quarter. CWM LLC now owns 27,141 shares of the airline’s stock valued at $880,000 after acquiring an additional 3,906 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Wall Street Analyst Weigh In

LUV has been the subject of several analyst reports. Bank of America upped their price target on shares of Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research report on Friday, January 30th. The Goldman Sachs Group boosted their target price on Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research note on Friday, January 30th. Evercore raised their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research report on Thursday, January 29th. Wells Fargo & Company boosted their price objective on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a research report on Friday, January 30th. Finally, Citigroup increased their price objective on Southwest Airlines from $44.00 to $54.00 in a research note on Tuesday, February 3rd. One 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $46.92.

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.