Southwest Airlines (NYSE:LUV) Upgraded at JPMorgan Chase & Co.

JPMorgan Chase & Co. upgraded shares of Southwest Airlines (NYSE:LUV) from an underweight rating to an overweight rating in a research report report published on Friday, Marketbeat Ratings reports. The brokerage currently has $60.00 price objective on the airline’s stock, up from their previous price objective of $36.00.

A number of other brokerages also recently issued reports on LUV. Susquehanna lifted their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a “neutral” rating in a research report on Friday, October 3rd. BMO Capital Markets initiated coverage on shares of Southwest Airlines in a research report on Tuesday, December 9th. They set a “market perform” rating and a $43.00 target price for the company. Wall Street Zen raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. Morgan Stanley increased their price target on shares of Southwest Airlines from $38.00 to $48.00 and gave the stock an “overweight” rating in a report on Monday, December 8th. Finally, Citigroup lifted their price objective on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. Six research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus target price of $42.11.

Southwest Airlines Stock Up 3.6%

LUV opened at $44.46 on Friday. The company has a fifty day moving average price of $37.32 and a 200-day moving average price of $34.28. The firm has a market capitalization of $22.99 billion, a P/E ratio of 68.39, a price-to-earnings-growth ratio of 0.27 and a beta of 1.16. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42. Southwest Airlines has a one year low of $23.82 and a one year high of $45.02.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The business had revenue of $6.17 billion during the quarter. Equities research analysts expect that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 16th. Shareholders of record on Friday, December 26th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, December 26th. Southwest Airlines’s dividend payout ratio (DPR) is 110.77%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently bought and sold shares of the business. First Heartland Consultants Inc. purchased a new stake in shares of Southwest Airlines in the 4th quarter worth about $207,000. SG Americas Securities LLC boosted its position in shares of Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of Southwest Airlines by 2.9% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 36,047 shares of the airline’s stock worth $1,531,000 after buying an additional 1,026 shares during the last quarter. Wedmont Private Capital bought a new position in Southwest Airlines during the 4th quarter valued at approximately $255,000. Finally, Nordea Investment Management AB purchased a new position in Southwest Airlines during the fourth quarter valued at $31,968,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: Rare double-upgrade from JPMorgan — JPMorgan upgraded LUV from underweight to overweight and lifted its price target to $60, a large upward move that traders say is the main catalyst for the rally as it signals materially higher earnings expectations. Barron’s: Rare Double Upgrade
• Positive Sentiment: Multiple price-target raises — Citi and UBS both bumped targets (Citi to $44, UBS to $45), reinforcing the analyst trend higher and supporting upside in the stock as models are re-priced for better forward earnings. Citi price target raise
• Positive Sentiment: Broader analyst optimism — Citigroup and other firms published bullish commentary forecasting notable price appreciation based on improving fundamentals and potential margin recovery. Citigroup forecast
• Neutral Sentiment: Susquehanna raised its target to $45 but kept a “neutral” rating — the higher target supports the rally but the retained rating tempers how decisive the firm views near-term upside. Benzinga: Susquehanna note
• Neutral Sentiment: Strategic/cabin changes under review — articles on Southwest’s cabin revamp and assigned seating argue these initiatives could reshape unit revenue and customer experience, but benefits depend on execution and timing. Yahoo: Cabin revamp
• Neutral Sentiment: New marketing/partnerships — a legacy partnership with the Chicago Cubs is positive PR and revenue/brand-supportive, but unlikely to move near-term fundamentals materially. MLB press release
• Neutral Sentiment: Mixed analyst landscape — several firms remain cautious/hold-rated (e.g., Wells Fargo), so while sentiment is tilting positive, coverage is not uniformly bullish. Wells Fargo hold

Southwest Airlines Company Profile

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.