JPMorgan Chase & Co. Raises Stake in Southwest Airlines Co. $LUV

JPMorgan Chase & Co. lifted its position in Southwest Airlines Co. (NYSE:LUV) by 13.6% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 12,218,086 shares of the airline’s stock after purchasing an additional 1,459,235 shares during the period. JPMorgan Chase & Co. owned about 2.36% of Southwest Airlines worth $389,879,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors also recently modified their holdings of the company. HighTower Advisors LLC grew its position in shares of Southwest Airlines by 67.7% during the third quarter. HighTower Advisors LLC now owns 198,322 shares of the airline’s stock worth $6,329,000 after purchasing an additional 80,032 shares in the last quarter. Abich Financial Wealth Management LLC bought a new position in Southwest Airlines in the 3rd quarter worth approximately $35,000. Assetmark Inc. grew its holdings in Southwest Airlines by 78.1% during the 3rd quarter. Assetmark Inc. now owns 3,139 shares of the airline’s stock valued at $100,000 after buying an additional 1,377 shares in the last quarter. Wedbush Securities Inc. raised its position in shares of Southwest Airlines by 4.9% during the third quarter. Wedbush Securities Inc. now owns 9,117 shares of the airline’s stock valued at $291,000 after buying an additional 430 shares during the last quarter. Finally, Cibc World Market Inc. lifted its holdings in shares of Southwest Airlines by 12.6% in the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock worth $61,140,000 after buying an additional 214,092 shares in the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $54.68 on Thursday. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock’s fifty day moving average is $44.96 and its two-hundred day moving average is $36.85. Southwest Airlines Co. has a 52 week low of $23.82 and a 52 week high of $55.11. The company has a market capitalization of $26.86 billion, a PE ratio of 65.09, a price-to-earnings-growth ratio of 0.39 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company’s revenue was up 7.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.56 earnings per share. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, analysts expect that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Morgan Stanley lifted their target price on Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. Evercore lifted their price objective on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research note on Thursday, January 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Raymond James Financial raised their target price on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a report on Friday, December 19th. Finally, Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $48.14.

More Southwest Airlines News

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

• Positive Sentiment: UBS upgraded LUV from Neutral to Buy and raised its 12‑month price target to $73 (from $51), citing meaningful earnings upside from new seating/fee initiatives. This upgrade is the primary catalyst for the rally. Southwest Airlines upgraded to ‘Buy’ by UBS, shares jump
• Positive Sentiment: UBS and other outlets highlight extra‑legroom seating and ancillary fee changes as incremental profit drivers — analysts expect meaningful per‑passenger revenue lift if rollout succeeds. Extra legroom to deliver extra profits for Southwest Airlines — UBS
• Positive Sentiment: Market reaction: multiple reports note a sizable intraday jump and LUV reaching a new 52‑week high as traders priced in the UBS call and follow‑on coverage. Southwest Airlines (NYSE:LUV) Hits New 52-Week High Following Analyst Upgrade
• Neutral Sentiment: Elevated intraday and premarket volume accompanied the move (reports from Benzinga/MSN), indicating momentum trading around the headlines rather than a slow fundamental re‑rating. What’s Going On With Southwest Airlines Stock On Tuesday?
• Neutral Sentiment: Company fundamentals remain mixed: a recent quarter showed a small EPS beat but revenue slightly below consensus and guidance for FY‑2026 that investors will watch as fee changes roll out (impact depends on execution and timing).
• Negative Sentiment: Risks: valuation is elevated (P/E above peers), and the upside hinges on successful implementation of seating/fee changes without customer backlash or slower uptake — execution risk could cap gains if assumptions disappoint.

Southwest Airlines Profile

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.