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

Southwest Airlines Co. (NYSE:LUV) was the recipient of a large decline in short interest in the month of December. As of December 15th, there was short interest totaling 25,775,997 shares, a decline of 19.6% from the November 30th total of 32,079,035 shares. Based on an average daily trading volume, of 13,333,618 shares, the short-interest ratio is currently 1.9 days. Approximately 5.0% of the company’s stock are short sold. Approximately 5.0% of the company’s stock are short sold. Based on an average daily trading volume, of 13,333,618 shares, the short-interest ratio is currently 1.9 days.

Southwest Airlines Stock Performance

LUV traded up $0.07 on Wednesday, hitting $41.34. 6,305,323 shares of the company’s stock were exchanged, compared to its average volume of 11,017,646. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52. The stock has a fifty day moving average of $35.74 and a two-hundred day moving average of $33.72. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $43.54. The firm has a market cap of $21.38 billion, a PE ratio of 63.60, a P/E/G ratio of 0.85 and a beta of 1.17.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Tuesday, February 6th. The airline reported ($0.38) EPS for the quarter. The company had revenue of $6.17 billion for the quarter. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. On average, research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, January 16th. Shareholders of record on Friday, December 26th will be given a $0.18 dividend. The ex-dividend date of this dividend is Friday, December 26th. This represents a $0.72 annualized dividend and a yield of 1.7%. Southwest Airlines’s dividend payout ratio (DPR) is currently 110.77%.

Hedge Funds Weigh In On Southwest Airlines

Institutional investors have recently modified their holdings of the company. Ameriprise Financial Inc. boosted its stake in Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after purchasing an additional 3,753,183 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 buying an additional 1,459,235 shares during the last quarter. Artisan Partners Limited Partnership boosted its position in shares of Southwest Airlines by 0.9% during the second quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after buying an additional 98,290 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Southwest Airlines by 2,403.8% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after buying an additional 9,716,160 shares in the last quarter. Finally, Invesco Ltd. increased its position in Southwest Airlines by 9.2% in the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock valued at $218,175,000 after acquiring an additional 577,326 shares during the period. Institutional investors own 80.82% of the company’s stock.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Wells Fargo & Company began coverage on Southwest Airlines in a research note on Thursday, December 18th. They set an “equal weight” rating and a $45.00 target price for the company. Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. BNP Paribas Exane upped their target price on Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. BMO Capital Markets assumed coverage on shares of Southwest Airlines in a research report on Tuesday, December 9th. They set a “market perform” rating and a $43.00 price target for the company. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday. Five research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $39.44.

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.