Southwest Airlines (NYSE:LUV) Price Target Lowered to $46.00 at TD Cowen

Southwest Airlines (NYSE:LUV) had its price objective lowered by TD Cowen from $56.00 to $46.00 in a research note published on Thursday,MarketScreener reports. TD Cowen currently has a buy rating on the airline’s stock.

Other analysts have also recently issued reports about the stock. Zacks Research cut shares of Southwest Airlines from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, March 11th. Wells Fargo & Company cut their price target on shares of Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a report on Monday, March 16th. Susquehanna lifted their price objective on shares of Southwest Airlines from $45.00 to $55.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, Raymond James Financial lowered their target price on shares of Southwest Airlines from $55.00 to $45.00 and set an “outperform” rating on the stock in a research report on Tuesday. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $43.72.

Southwest Airlines Stock Performance

Shares of NYSE LUV opened at $37.66 on Thursday. 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 has a one year low of $23.82 and a one year high of $55.11. The business’s 50-day moving average price is $45.61 and its two-hundred day moving average price is $39.34. The company has a market capitalization of $18.49 billion, a P/E ratio of 44.83, a price-to-earnings-growth ratio of 0.29 and a beta of 1.19.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period last year, the business earned $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Analysts anticipate 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 was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th were given a $0.18 dividend. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Institutional Trading of Southwest Airlines

Large investors have recently modified their holdings of the company. Franklin Resources Inc. lifted its position in Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after acquiring an additional 2,626,853 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after purchasing an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of Southwest Airlines by 13.6% in the third quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after purchasing an additional 1,459,235 shares during the last quarter. Invesco Ltd. increased its stake in shares of Southwest Airlines by 9.2% in the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after purchasing an additional 577,326 shares during the period. Finally, Morgan Stanley increased its stake in shares of Southwest Airlines by 4.1% in the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock worth $257,423,000 after purchasing an additional 244,891 shares during the period. 80.82% of the stock is owned by institutional investors.

More Southwest Airlines News

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

• Positive Sentiment: Zacks highlights LUV as a “strong value stock,” arguing the shares look attractive on style/value metrics relative to the airline group, which could support longer-term upside for value-focused investors. Here’s Why Southwest Airlines (LUV) is a Strong Value Stock
• Positive Sentiment: Jefferies nudged its price target up slightly (from $41 to $42) and kept a Hold — a modest vote of stability that suggests some dealers see the hit as selectively priced-in rather than structural. Jefferies adjusts price target on Southwest Airlines to $42
• Neutral Sentiment: Bank of America and other analysts note that strong travel demand and the ability to raise fares could offset some of the margin pressure from higher fuel — but this is conditional and may not fully offset rapid fuel spikes. High Fuel Costs Weigh on Airlines but Demand May Offset Impact, BofA Says
• Neutral Sentiment: Several firms (BMO, Raymond James) trimmed price targets but kept Outperform ratings — a mixed signal: conviction in recovery remains, but near-term margin risk forces lower valuation. BMO lowers PT on Southwest to $45 Raymond James lowers PT on Southwest to $45
• Negative Sentiment: Jet fuel and crude prices have surged (reports of ~100% jet-fuel increases in some contexts), directly raising operating costs and weighing on airline margins — a core near-term negative for Southwest’s profitability. Jet fuel prices are up 100%, oil prices keep surging, and airlines are paying the price
• Negative Sentiment: Geopolitical comments about potential conflict with Iran have spooked markets and raised jet-fuel cost concerns, triggering broad airline sell-offs that include Southwest. This is a direct catalyst for today’s weakness. Airline Stocks Tumble as Trump’s Iran War Comments Spark Jet Fuel Cost Concerns
• Negative Sentiment: Multiple firms cut price targets and one notable sell rating (Goldman Sachs lowered its PT to $30 and maintains Sell); Bank of America also moved to Underperform — analyst downgrades add selling pressure and reduce conviction among institutional holders. Goldman lowers PT on Southwest to $30 (Sell) BofA lowers PT to $40 (Underperform)
• Negative Sentiment: Additional coverage notes tie the fuel spike directly to Southwest’s near-term cost outlook and possible margin compression; that macro-driven risk is the dominant near-term driver for investor sentiment. Airline Stocks Tumble as United (UAL) and Southwest (LUV) Face Soaring Jet Fuel Crisis

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.