How to buy Southwest Airlines shares

Own Southwest Airlines shares in just a few minutes.

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Southwest Airlines Co (LUV) is a leading airlines business with stocks listed in the US. It opened the day at US$55 after a previous close of US$55.57. During the day the price has varied from a low of USD54.67 to a high of USD55.69. The latest price was USD55.19 (25 minute delay). Southwest Airlines is listed on the NYSE. All prices are listed in US Dollars.

How to buy shares in Southwest Airlines

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Southwest Airlines. Find the share by name or ticker symbol: LUV. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Southwest Airlines reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$58.55, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Southwest Airlines, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Southwest Airlines. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Southwest Airlines share price

Use our graph to track the performance of LUV stocks over time.

Southwest Airlines shares at a glance

Information last updated 2021-06-18.
OpenUS$55
HighUS$55.69
LowUS$54.67
CloseUS$55.19
Previous closeUS$55.57
Change US$-0.38
Change % -0.6838%
Volume 8,798,297
Information last updated 2021-06-17.
52-week rangeUS$30.24 - US$64.75
50-day moving average US$60.1574
200-day moving average US$55.0688
Target priceUS$69.98
PE ratio 100.2493
Dividend yield US$0 (0%)
Earnings per share (TTM) US$-4.9295

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Southwest Airlines stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Southwest Airlines price performance over time

Historical closes compared with the last close of $55.19

1 month (2021-05-21) -8.15%
3 months (2021-03-19) -9.60%
6 months (2020-12-18) 19.90%
1 year (2020-06-19) 59.74%
2 years (2019-06-20) 7.12%
3 years (2018-06-20) 6.13%
5 years (2016-06-20) 37.91%

Is Southwest Airlines under- or over-valued?

Valuing Southwest Airlines stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Southwest Airlines's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Southwest Airlines's P/E ratio

Southwest Airlines's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 100x. In other words, Southwest Airlines shares trade at around 100x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Southwest Airlines's PEG ratio

Southwest Airlines's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 46.6911. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Southwest Airlines's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Southwest Airlines's EBITDA

Southwest Airlines's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$229 million.

The EBITDA is a measure of a Southwest Airlines's overall financial performance and is widely used to measure a its profitability.

Southwest Airlines financials

Revenue TTM US$6.9 billion
Gross profit TTM US$-1,875,000,000
Return on assets TTM -12.42%
Return on equity TTM -3152.8%
Profit margin -41.71%
Book value 15.378
Market capitalisation US$33.8 billion

TTM: trailing 12 months

Shorting Southwest Airlines shares

There are currently 16.1 million Southwest Airlines shares held short by investors – that's known as Southwest Airlines's "short interest". This figure is 6.4% up from 15.1 million last month.

There are a few different ways that this level of interest in shorting Southwest Airlines shares can be evaluated.

Southwest Airlines's "short interest ratio" (SIR)

Southwest Airlines's "short interest ratio" (SIR) is the quantity of Southwest Airlines shares currently shorted divided by the average quantity of Southwest Airlines shares traded daily (recently around 5.4 million). Southwest Airlines's SIR currently stands at 2.96. In other words for every 100,000 Southwest Airlines shares traded daily on the market, roughly 2960 shares are currently held short.

However Southwest Airlines's short interest can also be evaluated against the total number of Southwest Airlines shares, or, against the total number of tradable Southwest Airlines shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Southwest Airlines's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Southwest Airlines shares in existence, roughly 30 shares are currently held short) or 0.0274% of the tradable shares (for every 100,000 tradable Southwest Airlines shares, roughly 27 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Southwest Airlines.

Find out more about how you can short Southwest Airlines stock.

Southwest Airlines's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Southwest Airlines.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Southwest Airlines's total ESG risk score

Total ESG risk: 29.94

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Southwest Airlines's overall score of 29.94 (as at 12/31/2018) is pretty weak – landing it in it in the 61st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Southwest Airlines is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Southwest Airlines's environmental score

Environmental score: 8.72/100

Southwest Airlines's social score

Social score: 11.49/100

Southwest Airlines's governance score

Governance score: 4.73/100

Southwest Airlines's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Southwest Airlines scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Southwest Airlines has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Southwest Airlines Co was last rated for ESG on: 2019-01-01.

Total ESG score 29.94
Total ESG percentile 61.04
Environmental score 8.72
Social score 11.49
Governance score 4.73
Level of controversy 2

Southwest Airlines share dividends

We're not expecting Southwest Airlines to pay a dividend over the next 12 months.

Have Southwest Airlines's shares ever split?

Southwest Airlines's shares were split on a 3:2 basis on 15 February 2001. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Southwest Airlines shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Southwest Airlines shares which in turn could have impacted Southwest Airlines's share price.

Southwest Airlines share price volatility

Over the last 12 months, Southwest Airlines's shares have ranged in value from as little as US$30.24 up to US$64.75. A popular way to gauge a stock's volatility is its "beta".

LUV.US volatility(beta: 1.25)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Southwest Airlines's is 1.2543. This would suggest that Southwest Airlines's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Southwest Airlines overview

Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2020, the company operated a total fleet of 718 Boeing 737 aircrafts; and served 107 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Its services also cover destinations in Hilo on Hawaii; Cozumel, Mexico; Steamboat Springs, Colorado; Miami, Florida; Palm Springs, California; and Montrose (Telluride and Crested Butte), Colorado. In addition, the company provides inflight entertainment and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company provides a suite of digital platforms to support customers' travel needs, including Southwest.com, mobile website, and apps; and SWABIZ, an online booking tool. Further, it offers ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was founded in 1967 and is headquartered in Dallas, Texas.

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