Southwest Airlines (LUV) Short Interest Ratio & Short Volume

Short interest is the volume of Southwest Airlines shares that have been sold short but have not yet been closed out or covered. As of July 15th, investors have sold 45,800,000 shares of LUV short. Learn More on Southwest Airlines' current short interest.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. LUV shares currently have a short interest ratio of 4.0. Learn More on Southwest Airlines's short interest ratio.

As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of Southwest Airlines: Concourse Financial Group Securities Inc., Caas Capital Management LP, Walleye Trading LLC, PEAK6 Investments LLC, HAP Trading LLC, Twin Tree Management LP, BNP Paribas Financial Markets, and Concourse Financial Group Securities Inc.. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission.

Southwest Airlines saw a increase in short interest during the month of July. As of July 15th, there was short interest totaling 45,800,000 shares, an increase of 29.6% from the previous total of 35,330,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

Here is how the short interest of companies in the sector of "transportation" compare to Southwest Airlines: Delta Air Lines, Inc. (4.55%), United Airlines Holdings, Inc. (3.84%), Alaska Air Group, Inc. (7.31%), Copa Holdings, S.A. (4.47%), SkyWest, Inc. (4.32%), JetBlue Airways Co. (13.75%), Allegiant Travel (10.47%), Hawaiian Holdings, Inc. (11.20%), Ryanair Holdings plc (1.40%), American Airlines Group Inc. (16.83%),

As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications, Inc. ($4.13 billion), Royal Caribbean Cruises Ltd. ($2.77 billion), Moderna, Inc. ($2.76 billion), Coinbase Global, Inc. ($2.36 billion), Rivian Automotive, Inc. ($2.22 billion), Paychex, Inc. ($2.02 billion), Tractor Supply ($1.81 billion), Enphase Energy, Inc. ($1.65 billion), Chesapeake Energy Co. ($1.62 billion), and Lululemon Athletica Inc. ($1.58 billion). View all of the most shorted stocks.

Short selling LUV is an investing strategy that aims to generate trading profit from Southwest Airlines as its price is falling. LUV shares are trading down $0.85 today. To short a stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that a stock will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for Southwest Airlines occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of LUV, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including LUV, twice per month. The most recent reporting period available is July, 15 2024.