UBS Group Cuts Southwest Airlines (NYSE:LUV) Price Target to $56.00

Southwest Airlines (NYSE:LUV) had its price objective decreased by UBS Group from $59.00 to $56.00 in a research report sent to investors on Monday morning,Benzinga reports. UBS Group currently has a buy rating on the airline’s stock.

A number of other analysts also recently issued reports on the stock. BMO Capital Markets upgraded shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and raised their price target for the stock from $43.00 to $57.50 in a report on Friday, January 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Jefferies Financial Group lowered their price objective on Southwest Airlines from $48.00 to $41.00 and set a “hold” rating for the company in a research report on Thursday, March 12th. Susquehanna raised their target price on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 3rd. Finally, Bank of America lifted their target price on Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research report on Friday, January 30th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average target price of $46.25.

Southwest Airlines Trading Up 0.7%

Shares of LUV stock opened at $40.12 on Monday. The company’s 50-day moving average price is $46.22 and its 200-day moving average price is $39.13. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. The stock has a market cap of $19.71 billion, a price-to-earnings ratio of 47.76, a PEG ratio of 0.29 and a beta of 1.10. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $55.11.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the prior year, the firm posted $0.56 earnings per share. Southwest Airlines’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, equities analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Institutional Trading of Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the stock. MCF Advisors LLC lifted its stake in Southwest Airlines by 28.5% during the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after purchasing an additional 203 shares in the last quarter. World Investment Advisors grew its stake in shares of Southwest Airlines by 1.0% in the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock valued at $843,000 after buying an additional 210 shares in the last quarter. Parkside Financial Bank & Trust raised its holdings in shares of Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock valued at $127,000 after buying an additional 213 shares during the period. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after buying an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC lifted its stake in Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after acquiring an additional 272 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.