Federated Hermes Inc. Increases Position in Southwest Airlines Co. $LUV

Federated Hermes Inc. boosted its position in Southwest Airlines Co. (NYSE:LUV) by 11,266.6% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 281,891 shares of the airline’s stock after purchasing an additional 279,411 shares during the quarter. Federated Hermes Inc.’s holdings in Southwest Airlines were worth $8,995,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Elevation Point Wealth Partners LLC purchased a new stake in shares of Southwest Airlines during the second quarter worth about $25,000. Corsicana & Co. purchased a new stake in Southwest Airlines in the third quarter valued at approximately $27,000. Quent Capital LLC purchased a new stake in shares of Southwest Airlines in the 3rd quarter valued at $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Southwest Airlines during the 2nd quarter worth about $31,000. Finally, Hantz Financial Services Inc. raised its stake in shares of Southwest Airlines by 81.4% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,056 shares of the airline’s stock valued at $34,000 after buying an additional 474 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Stock Performance

Shares of LUV opened at $47.51 on Monday. The stock has a 50-day simple moving average of $40.71 and a 200-day simple moving average of $35.18. 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 Co. has a 1 year low of $23.82 and a 1 year high of $49.85. The stock has a market capitalization of $24.57 billion, a PE ratio of 56.56, a PEG ratio of 0.37 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the prior year, the firm posted $0.56 EPS. The business’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. On average, analysts predict that Southwest Airlines Co. 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 was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

Wall Street Analyst Weigh In

LUV has been the topic of several analyst reports. Wall Street Zen upgraded shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. Morgan Stanley boosted their target price on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday. The Goldman Sachs Group boosted their price target on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday. Seaport Research Partners raised their price objective on Southwest Airlines from $57.00 to $58.00 in a report on Thursday. Finally, Citigroup raised their price target on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 7th. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $44.76.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.