Raymond James Financial Cuts Southwest Airlines (NYSE:LUV) Price Target to $54.00

Southwest Airlines (NYSE:LUV) had its price objective lowered by Raymond James Financial from $60.00 to $54.00 in a research note released on Monday,Benzinga reports. The firm currently has an outperform rating on the airline’s stock.

A number of other research analysts have also commented on LUV. Susquehanna upped their price target on shares of Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. Wells Fargo & Company raised their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday, June 30th. BMO Capital Markets boosted their price objective on Southwest Airlines from $58.50 to $60.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. JPMorgan Chase & Co. decreased their target price on Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Finally, Barclays increased their target price on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Nine 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. Based on data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average price target of $49.01.

Southwest Airlines Trading Down 0.3%

Shares of Southwest Airlines stock opened at $40.70 on Monday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The business has a fifty day simple moving average of $46.92 and a two-hundred day simple moving average of $44.25. Southwest Airlines has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a market capitalization of $19.91 billion, a price-to-earnings ratio of 24.97, a P/E/G ratio of 0.37 and a beta of 1.14.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company’s quarterly revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Research analysts forecast that Southwest Airlines will post 3.32 EPS for the current year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s payout ratio is 44.17%.

Institutional Investors Weigh In On Southwest Airlines

Several institutional investors and hedge funds have recently bought and sold shares of LUV. AQR Capital Management LLC raised its position in shares of Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after buying an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC increased its stake in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after acquiring an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP raised its position in Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after purchasing an additional 98,986 shares in the last quarter. 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.