Southwest Airlines (NYSE:LUV) Lowered to “Hold” Rating by Wall Street Zen

Wall Street Zen lowered shares of Southwest Airlines (NYSE:LUV) from a buy rating to a hold rating in a research report sent to investors on Saturday.

LUV has been the subject of several other research reports. Susquehanna increased their price objective on shares of Southwest Airlines from $45.00 to $55.00 and gave the company a “neutral” rating in a research report on Tuesday, February 3rd. Rothschild & Co Redburn boosted their target price on shares of Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a report on Thursday, March 5th. The Goldman Sachs Group upped their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research report on Friday, January 30th. Zacks Research downgraded shares of Southwest Airlines from a “strong-buy” rating to a “hold” rating in a report on Wednesday. Finally, TD Cowen dropped their price target on Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a research report on Monday, March 9th. Eight equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $47.34.

Southwest Airlines Stock Performance

NYSE LUV opened at $38.77 on Friday. The stock has a market capitalization of $19.05 billion, a PE ratio of 46.15, a P/E/G ratio of 0.28 and a beta of 1.10. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $55.11. The business has a 50 day simple moving average of $46.67 and a two-hundred day simple moving average of $38.70. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same period in the prior year, the company earned $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 predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds have recently added to or reduced their stakes in LUV. Corient Private Wealth LLC raised its position in Southwest Airlines by 27.9% in the 4th quarter. Corient Private Wealth LLC now owns 85,759 shares of the airline’s stock worth $3,545,000 after purchasing an additional 18,685 shares during the period. Hsbc Holdings PLC boosted its position in shares of Southwest Airlines by 23.8% during the fourth quarter. Hsbc Holdings PLC now owns 939,398 shares of the airline’s stock valued at $38,916,000 after buying an additional 180,619 shares during the period. SHP Wealth Management purchased a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $25,000. Strategic Investment Solutions Inc. IL grew its stake in shares of Southwest Airlines by 37.9% during the fourth quarter. Strategic Investment Solutions Inc. IL now owns 7,275 shares of the airline’s stock valued at $301,000 after buying an additional 2,000 shares during the last quarter. Finally, MidFirst Bank bought a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $39,000. 80.82% of the stock is currently owned by institutional investors.

Trending Headlines about Southwest Airlines

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?

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.