Olstein Capital Management L.P. Trims Stake in Southwest Airlines Co. $LUV

Olstein Capital Management L.P. lessened its position in Southwest Airlines Co. (NYSE:LUV) by 23.5% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 127,000 shares of the airline’s stock after selling 39,000 shares during the quarter. Olstein Capital Management L.P.’s holdings in Southwest Airlines were worth $5,249,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. GHP Investment Advisors Inc. bought a new stake in Southwest Airlines in the fourth quarter worth about $26,000. Quent Capital LLC purchased a new position in shares of Southwest Airlines during the third quarter valued at approximately $27,000. Optima Capital LLC bought a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $27,000. Lodestone Wealth Management LLC bought a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $29,000. Finally, Abich Financial Wealth Management LLC purchased a new stake in shares of Southwest Airlines in the third quarter worth approximately $35,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Trading Down 0.4%

LUV opened at $41.35 on Friday. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The stock’s fifty day moving average is $40.90 and its two-hundred day moving average is $40.61. The company has a market capitalization of $20.21 billion, a P/E ratio of 26.68, a PEG ratio of 0.44 and a beta of 1.12. Southwest Airlines Co. has a 52 week low of $28.98 and a 52 week high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.45. The business had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business’s revenue was up 12.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts forecast that Southwest Airlines Co. will post 2.9 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.7%. The ex-dividend date is Thursday, June 11th. Southwest Airlines’s dividend payout ratio is presently 46.45%.

Wall Street Analyst Weigh In

LUV has been the subject of a number of recent analyst reports. Bank of America dropped their price objective on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a report on Wednesday, April 1st. Jefferies Financial Group reduced their target price on Southwest Airlines from $42.00 to $37.00 and set a “hold” rating on the stock in a research note on Monday, April 27th. Citigroup decreased their target price on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research report on Friday, March 20th. Weiss Ratings upgraded shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, April 24th. Finally, BNP Paribas Exane raised their price target on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research note on Tuesday, April 21st. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus price target of $44.11.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Board approved a cash dividend of $0.18 per share (record June 11; payable July 2) — a return of capital that supports income-oriented holders and signals board confidence in cash flow. Article Title
• Positive Sentiment: Southwest was ranked #1 by J.D. Power for customer satisfaction among economy travelers for the fifth straight year — a reputational win that supports demand, retention and potential pricing power. Article Title
• Neutral Sentiment: Feature on durable, income-oriented investing referencing Buffett’s “kamikaze pricing” is general market color on investor preferences (not specific to Southwest fundamentals). Useful context for income-seeking shareholders but unlikely to move LUV alone. Article Title
• Negative Sentiment: Zacks cut Q4 2026/Q2 2027/Q4 2027 and FY2027 EPS estimates and maintained a “Hold” rating — downward revisions to analyst forecasts can pressure the stock multiple and signal weaker near-term profit expectations. Article Title
• Negative Sentiment: U.S. airlines’ March jet fuel costs jumped >50% month-over-month after the Iran conflict, adding meaningful unplanned expense for carriers; higher fuel costs compress margins unless passed to consumers. Article Title
• Negative Sentiment: Industry-wide schedule cuts (75,000+ summer flights removed) reflect airlines trimming capacity in response to soaring fuel prices — potential revenue disruption, ticketing churn, and operational complexity for carriers including Southwest. Article Title

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.