Southwest Airlines Co. $LUV Shares Sold by Pacer Advisors Inc.

Pacer Advisors Inc. trimmed its position in shares of Southwest Airlines Co. (NYSE:LUV) by 39.4% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 25,535 shares of the airline’s stock after selling 16,615 shares during the quarter. Pacer Advisors Inc.’s holdings in Southwest Airlines were worth $959,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the company. SHP Wealth Management acquired a new stake in shares of Southwest Airlines during the fourth quarter worth about $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Entrust Financial LLC purchased a new stake in Southwest Airlines during the 4th quarter worth approximately $26,000. Los Angeles Capital Management LLC purchased a new stake in Southwest Airlines during the 4th quarter worth approximately $26,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the 4th quarter worth approximately $27,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Zacks Research raised multiple EPS forecasts for Southwest. Estimates increased for Q3 2026 to $0.73 from $0.58, FY2026 to $3.29 from $2.75, FY2027 to $4.96 from $4.63, and FY2028 to $5.83 from $5.70. The upgrades suggest analysts see improving profitability over the next several years.
• Positive Sentiment: Zacks also lifted estimates for Q1 2027, Q3 2027, Q4 2026 and Q4 2027, reinforcing a generally improving earnings trajectory. However, the firm maintained its Hold rating, indicating that valuation or execution risks remain.
• Positive Sentiment: Southwest is offering a promotional Companion Pass that allows qualifying customers to bring a companion on eligible flights for $5, with unlimited use during the first two months of next year. The offer could support bookings and customer engagement, though its effect on revenue and margins is uncertain. Southwest Airlines Companion Pass promotion
• Neutral Sentiment: Southwest’s Compensation Committee approved higher executive pay to retain its leadership team. Retaining experienced executives may support the company’s ongoing strategy, but increased compensation also raises operating expenses and could draw investor scrutiny. Southwest Airlines Raises Executive Pay to Retain Leadership
• Negative Sentiment: A few longer-term Zacks revisions were slightly negative: Q2 2027 EPS was reduced to $1.16 from $1.22 and Q2 2028 EPS to $1.29 from $1.30. These minor cuts temper, but do not reverse, the broader pattern of upward earnings revisions.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Wells Fargo & Company raised their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Wall Street Zen upgraded Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. Raymond James Financial lifted their target price on Southwest Airlines from $55.00 to $60.00 and gave the company an “outperform” rating in a report on Monday, July 6th. Morgan Stanley boosted their target price on Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Finally, Citigroup cut their price target on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Friday, July 24th. Nine 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’s stock. According to MarketBeat.com, Southwest Airlines currently has a consensus rating of “Hold” and an average target price of $49.55.

Southwest Airlines Stock Down 0.2%

Shares of NYSE:LUV opened at $46.97 on Monday. The firm has a 50 day simple moving average of $47.12 and a 200-day simple moving average of $44.54. Southwest Airlines Co. has a twelve month low of $28.98 and a twelve month high of $55.11. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $22.98 billion, a PE ratio of 28.82, a P/E/G ratio of 0.42 and a beta of 1.14.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $8.58 billion. During the same period last year, the firm posted $0.43 EPS. The company’s revenue 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. On average, equities analysts predict that Southwest Airlines Co. will post 3.45 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.18 per share. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is 44.17%.

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.