LUV — Southwest Airlines Company

Stock analysis, trade plans, and proprietary indicators by Trend Edge.

Trend Edge Setup Score

Trend Edge rates LUV Bullish with a Setup Score of 41, net conviction 40, actionability 42. How the Setup Score works →

Total Setup Score41
Directional BiasBullish
Net Conviction40
Actionability42 (in range)

Key signals behind this score

About Southwest Airlines Company

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. Read full Trend Edge analysis →

Trend Edge Proprietary Indicators

Key Metrics

Current Price$40.71
Market Cap$19.51B
Float484.1M
Shares Outstanding489.2M
P/E (Forward)13.28
P/E (TTM)24.93
Price/Sales (TTM)0.65
vs. Analyst Target+27.2% to analyst PT
Profit Margin2.78%
Operating Margin (TTM)3.38%
Revenue (TTM)$30.07B
Earnings Growth (YoY)20.50%
Dividend Rate0.7%
Analyst Target Price$51.79 (24 analysts)

Financial History

Annual Revenue & Earnings History

YearRevenueNet IncomeGross ProfitEBITDA
2020 $9.05B -$3.07B -$1.89B -$2.69B
2021 $15.79B $977M $4.12B $3.03B
2022 $23.81B $539M $4.75B $2.38B
2023 $26.09B $465M $4.22B $2.39B
2024 $27.48B $465M $4.46B $2.47B
2025 $28.06B $441M $4.89B $2.24B

Recent Quarterly Revenue & Net Income

QuarterRevenueNet Income
Sep 2025 $6.95B $54.0M
Dec 2025 $7.44B $323M
Mar 2026 $7.25B $227M
Jun 2026 $8.43B $233M

Ownership & Float

Insider Ownership1.0%
Institutional Ownership93.7%
Short Float6.8%
% of All Funds Holding10.52%
Number of Funds Holding925

Current Moving Averages

Trend Edge tracks near-term, medium-term, cyclical, and secular moving averages across weekly and monthly timeframes to identify trend structure at every horizon.

TimeframeSMAValueTrend Context
Weekly10-Week SMA$46.11Near-term / short-term trend
Weekly40-Week SMA$43.41Medium-term trend
Weekly80-Week SMA$37.50Cyclical trend (business cycle)
Weekly200-Week SMA$33.56Secular trend (multi-year)
Monthly10-Month SMA$42.85Near-term monthly trend
Monthly20-Month SMA$37.18Medium-term monthly trend
Monthly40-Month SMA$33.40Secular monthly trend

Volume Shelves — Support & Resistance

Trend Edge identifies volume shelves: price zones where historically elevated trading volume creates structural support or resistance. A volume shelf forms when a disproportionate share of cumulative volume was transacted at a specific price level, making it a high-conviction anchor for future price reactions.

Price LevelTypeVolume RatioAge
$34.60 support 1.01x 7 months ago
$28.20 support 1.17x 14 months ago

Historical Earnings Reactions (123 events)

TimeframeAvg ReturnMedianWin RateBestWorst
Gap 0.06% 0.16% 54.47% 6.17% -5.91%
1 Day -0.10% -0.32% 45.53% 18.70% -18.45%
1 Week 0.11% 0.24% 51.22% 28.51% -28.34%
2 Weeks 1.50% 1.56% 60.16% 24.40% -25.28%
1 Month 2.27% 1.45% 53.28% 40.59% -38.12%

Next earnings: October 21, 2026 (57 days away)

Seasonality & Day-of-Week Patterns

Monthly Seasonality

MonthAvg ReturnWin RateSamples
Jan3.0%56.5%46
Feb2.5%57.4%47
Mar1.2%55.3%47
Apr-0.1%51.1%47
May1.8%48.9%47
Jun1.8%53.2%47
Jul1.6%55.3%47
Aug-1.7%37.0%46
Sep-0.2%45.7%46
Oct1.8%65.2%46
Nov5.7%67.4%46
Dec0.1%50.0%46

Day-of-Week Tendencies

DayAvg ReturnWin RateSamples
Monday -0.03% 46.8% 2222
Tuesday 0.11% 49.1% 2411
Wednesday 0.11% 48.4% 2409
Thursday 0.06% 46.1% 2364
Friday 0.11% 48.2% 2348

Top Institutional Holders

Institutional holder breakdown coming soon.

Total institutional ownership: 93.7%

Insider Transactions — Smart Summary

Total insider ownership: 1.0%

12-Month Insider Activity Summary

Total Filings2
Net Value-$302,055.6
Net Shares Change-8,203
% of Float-0.0%
C-Suite Filings1
Clusters Detected0

Key Insiders

NameTitleNet ValueFilingsActivity
Jones Justin EVP Operations -$302,055.6 1 1 sell
Atherton Lisa M -$4,478.1 1 1 sell

Significant Filings

DateInsiderTitleNet ValuePrice After
2025-12-08 Jones Justin EVP Operations -$302,055.6 Transaction at $37.36, now +9.0%
2026-04-08 Atherton Lisa M -$4,478.1 Transaction at $37.95, now +7.3%

View full insider transaction history on Trend Edge →

AI Consult Analysis

Trend Edge's AI Consult feature delivers a comprehensive, multi-layer trade plan for Southwest Airlines Company (LUV) powered by Claude Opus — Anthropic's most capable AI model. The analysis covers five layers: technical analysis (near-term, medium-term, cyclical, and secular trend, momentum, volume shelf support and resistance, breakout and breakdown signals), qualitative analysis (business model, competitive moat, sector dynamics), insider sentiment (buy and sell signals from executive and director transactions), share stats analysis (institutional accumulation, fund positioning, short float squeeze potential), and fundamental analysis (valuation, revenue growth, profit margin, earnings quality).

AI Consult synthesizes all five layers into a single bullish or bearish thesis with explicit entry, exit, stop loss, and take profit levels — giving you a complete, AI-powered trade plan with defined risk/reward. Whether you are building a long position, initiating a short, or looking for a reversal setup, AI Consult identifies the highest-probability signal from the current trend.

Get the full AI Consult analysis for LUV on Trend Edge →