Brokerages Set Southwest Airlines Co. (NYSE:LUV) Price Target at $44.21

Southwest Airlines Co. (NYSE:LUV) has received a consensus recommendation of “Hold” from the twenty-two analysts that are currently covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a sell rating, eight have issued a hold rating and nine have assigned a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $44.2050.

Several equities research analysts recently commented on LUV shares. BMO Capital Markets cut their target price on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 31st. Argus cut their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. UBS Group upped their target price on Southwest Airlines from $49.00 to $53.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. Evercore upped their target price on Southwest Airlines from $43.00 to $44.00 in a research report on Friday, April 24th. Finally, Weiss Ratings lowered Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $45.50 on Wednesday. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. Southwest Airlines has a 52 week low of $28.98 and a 52 week high of $55.11. The stock has a market capitalization of $22.24 billion, a P/E ratio of 29.36, a price-to-earnings-growth ratio of 0.49 and a beta of 1.15. The stock has a fifty day moving average of $40.46 and a 200-day moving average of $42.29.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. During the same quarter in the previous year, the firm earned ($0.13) EPS. Southwest Airlines’s revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, sell-side analysts expect that Southwest Airlines will post 2.81 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a $0.18 dividend. The ex-dividend date is Thursday, June 11th. This represents a $0.72 annualized dividend and a yield of 1.6%. Southwest Airlines’s dividend payout ratio is presently 46.45%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. SHP Wealth Management bought a new position in Southwest Airlines in the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. bought a new position in Southwest Airlines in the fourth quarter worth approximately $26,000. Entrust Financial LLC bought a new position in Southwest Airlines in the fourth quarter worth approximately $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines in the fourth quarter worth approximately $26,000. Finally, Optima Capital LLC bought a new position in Southwest Airlines in the fourth quarter worth approximately $27,000. Institutional investors own 80.82% of the company’s stock.

About Southwest Airlines

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.