Short Interest in Southwest Airlines Co. (NYSE:LUV) Drops By 19.6%

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

Southwest Airlines Trading Up 0.2%

Shares of NYSE LUV traded up $0.07 during trading on Thursday, hitting $41.34. 6,305,323 shares of the company were exchanged, compared to its average volume of 11,017,646. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $43.54. The company has a fifty day moving average price of $35.74 and a 200-day moving average price of $33.72. The firm has a market capitalization 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 issued its earnings results on Tuesday, February 6th. The airline reported ($0.38) EPS for the quarter. The firm had revenue of $6.17 billion for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%. As a group, equities research analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Elevation Point Wealth Partners LLC acquired a new stake in shares of Southwest Airlines in the second quarter valued at $25,000. Corsicana & Co. acquired a new position in Southwest Airlines during the 3rd quarter worth about $27,000. Quent Capital LLC purchased a new position in Southwest Airlines during the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd purchased a new position in Southwest Airlines during the 2nd quarter valued at about $31,000. Finally, Hantz Financial Services Inc. grew its position in Southwest Airlines by 81.4% in the 2nd quarter. Hantz Financial Services Inc. now owns 1,056 shares of the airline’s stock valued at $34,000 after acquiring an additional 474 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have commented on LUV shares. Barclays raised 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 report on Tuesday, December 16th. Sanford C. Bernstein raised their price target on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. Wall Street Zen upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a report on Saturday, October 25th. JPMorgan Chase & Co. increased their target price on Southwest Airlines from $35.00 to $36.00 and gave the company an “underweight” rating in a report on Friday, October 24th. Finally, TD Cowen lifted their price target on Southwest Airlines from $31.00 to $42.00 and gave the stock a “hold” rating in a research note on Friday, December 12th. Five investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the stock. 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.