Kettle Hill Capital Management LLC Buys 245,146 Shares of Southwest Airlines Co. $LUV

Key Points

• Kettle Hill Capital Management LLC increased its stake in Southwest Airlines by 81.9%, buying 245,146 shares to own 544,464 shares (about $17.37M), making LUV its 8th largest holding and roughly 0.11% of the company.
• Analyst sentiment is mixed with a consensus rating of Hold and a $47.34 target, even as some firms raised targets and ratings (e.g., Barclays to $56 and upgraded to Overweight) while others trimmed targets or maintained sell/hold views.
• Southwest beat EPS ($0.58 vs. $0.56) but missed revenue estimates, provided FY2026 guidance around $4.00 EPS and Q1 guidance near $0.45, and declared a $0.18 quarterly dividend (annualized $0.72, ~1.9% yield).

Kettle Hill Capital Management LLC grew its stake in Southwest Airlines Co. (NYSE:LUV - Free Report) by 81.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 544,464 shares of the airline's stock after purchasing an additional 245,146 shares during the period. Southwest Airlines makes up approximately 3.9% of Kettle Hill Capital Management LLC's holdings, making the stock its 8th largest holding. Kettle Hill Capital Management LLC owned approximately 0.11% of Southwest Airlines worth $17,374,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Elevation Point Wealth Partners LLC acquired a new stake in Southwest Airlines in the 2nd quarter valued at $25,000. Corsicana & Co. acquired a new position in Southwest Airlines during the third quarter worth $27,000. Quent Capital LLC bought a new position in shares of Southwest Airlines during the third quarter valued at $27,000. Abich Financial Wealth Management LLC acquired a new stake in shares of Southwest Airlines in the 3rd quarter valued at $35,000. Finally, Root Financial Partners LLC acquired a new stake in shares of Southwest Airlines in the 3rd quarter valued at $37,000. Institutional investors own 80.82% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on LUV. BNP Paribas Exane increased their target price on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an "underperform" rating in a research report on Monday, December 8th. Evercore boosted their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an "in-line" rating in a research report on Thursday, January 29th. TD Cowen dropped their price objective on shares of Southwest Airlines from $66.00 to $55.00 and set a "buy" rating for the company in a report on Monday, March 9th. Barclays upgraded shares of Southwest Airlines from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. Finally, Citigroup boosted their target price on Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. Eight investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $47.34.

Southwest Airlines Stock Up 0.4%

Shares of NYSE LUV opened at $38.77 on Monday. Southwest Airlines Co. has a 12-month low of $23.82 and a 12-month high of $55.11. The firm's 50-day simple moving average is $46.67 and its 200 day simple moving average is $38.74. 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 company has a market cap of $19.05 billion, a price-to-earnings ratio of 46.15, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data 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. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm had revenue of $7.44 billion during the quarter, compared to analysts' expectations of $7.51 billion. During the same quarter last year, the company posted $0.56 EPS. The company'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, research analysts expect that Southwest Airlines Co. will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. Southwest Airlines's dividend payout ratio (DPR) is currently 85.71%.

More Southwest Airlines News

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

• Positive Sentiment: Unusual call buying — Traders purchased roughly 49,224 LUV calls (about a 104% jump vs. typical daily call volume), which suggests short-term bullish speculative activity or hedging that can support the share price.
• Neutral Sentiment: Valuation pieces highlight recent share weakness and longer-term gains — Coverage notes LUV has declined in the past month and 3 months, prompting fresh valuation discussion even as 1‑year returns remain strong; these analyses may attract bargain hunters or prompt more selling depending on investor view. Assessing Southwest Airlines (LUV) Valuation After Recent Share Price Weakness
• Neutral Sentiment: Price-target and thematic pieces summarize street views for 2026 — Roundups of Wall Street price predictions and longer-term outlooks provide context but don’t move fundamentals immediately. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Neutral Sentiment: Redburn raised its price target to $35 but kept a Sell rating — mixed signal: a higher target is constructive while the Sell stance keeps downside narrative alive. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating
• Negative Sentiment: Southwest will end service at Chicago O'Hare and Washington Dulles — exits from two major airports shrink network reach and could reduce revenue or market share in those metros, raising near-term growth concerns. Southwest Airlines ends service to Chicago's O'Hare and Washington's Dulles airports Southwest Airlines to end service at O'Hare, Dulles
• Negative Sentiment: Analyst downgrades and lower earnings estimates — Jefferies cut its price target to $41 (Hold) and Zacks moved LUV from Strong‑Buy to Hold while trimming FY2028 EPS — these reduce analyst support and can pressure sentiment. Southwest Airlines NYSE: LUV Price Target Lowered to $41.00 at Jefferies Financial Group Zacks.com
• Negative Sentiment: Oil spike and geopolitical risk — Coverage warns that oil returning toward $100/barrel amid the Iran conflict materially raises jet fuel costs and could compress margins across carriers; sector pain can drag LUV despite company-specific factors. Airline Stocks Were Pricing 2026 Like A Runway―Oil Just Made It A Cliff Edge Only 3 U.S. Airlines Can Remain Profitable at Current Oil Prices
• Negative Sentiment: Near-term selling pressure — multiple outlets noted shares sliding last week/month and premarket weakness tied to oil and supply concerns, which can amplify short-term volatility. Why Is Southwest Airlines Stock Sliding Thursday?

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.

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