Southwest Airlines Target of Unusually High Options Trading (NYSE:LUV)

Posted by George Bondi on Aug 31st, 2026

Southwest Airlines Co. (NYSE:LUV – Get Free Report) saw unusually large options trading on Monday. Stock traders bought 23,905 put options on the stock. This is an increase of approximately 75% compared to the average volume of 13,683 put options.

Southwest Airlines Price Performance

NYSE LUV traded down $0.90 during mid-day trading on Monday, hitting $38.74. The stock had a trading volume of 2,106,037 shares, compared to its average volume of 7,680,513. The company has a 50 day simple moving average of $46.59 and a 200 day simple moving average of $44.05. The company has a market cap of $18.95 billion, a price-to-earnings ratio of 23.77, a P/E/G ratio of 0.36 and a beta of 1.14. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period last year, the firm posted $0.43 EPS. The firm’s revenue for the quarter was up 16.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Equities analysts forecast that Southwest Airlines will post 3.32 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s payout ratio is currently 44.17%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on LUV shares. UBS Group upped their target price on shares of Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. The Goldman Sachs Group boosted their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, July 2nd. Barclays upped their price objective on Southwest Airlines from $56.00 to $65.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Evercore increased their price objective on Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. Finally, Morgan Stanley boosted their target price on Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $49.01.

Check Out Our Latest Stock Analysis on Southwest Airlines

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC boosted its holdings in shares of Southwest Airlines by 100.6% during 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 during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after purchasing an additional 3,141 shares during the last quarter. Empowered Funds LLC lifted its position in Southwest Airlines by 7.6% during the first 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 period. EverSource Wealth Advisors LLC boosted its stake in Southwest Airlines by 73.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after buying an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP boosted its stake in Southwest Airlines by 47.4% in the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

(Get Free Report)

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.