Southwest Airlines (NYSE:LUV) Given New $50.00 Price Target at TD Cowen

Southwest Airlines (NYSE:LUV) had its price objective lifted by TD Cowen from $42.00 to $50.00 in a research report sent to investors on Friday, Marketbeat.com reports. TD Cowen currently has a hold rating on the airline’s stock.

LUV has been the subject of several other research reports. Wells Fargo & Company began coverage on Southwest Airlines in a report on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 price objective for the company. Deutsche Bank Aktiengesellschaft raised their price target on Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Sanford C. Bernstein increased their price objective on Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a report on Thursday, November 20th. Barclays upgraded shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $34.00 to $56.00 in a report on Tuesday, December 16th. Finally, Bank of America increased their price target on shares of Southwest Airlines from $28.00 to $37.00 and gave the company an “underperform” rating in a research note on Tuesday, January 6th. Seven analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Southwest Airlines has a consensus rating of “Hold” and a consensus price target of $44.76.

Southwest Airlines Trading Down 2.0%

NYSE:LUV opened at $47.51 on Friday. The company has a market cap of $24.57 billion, a P/E ratio of 56.56, a price-to-earnings-growth ratio of 0.44 and a beta of 1.16. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $49.85. The business has a 50 day moving average price of $40.71 and a two-hundred day moving average price of $35.21. The company has a quick ratio of 0.42, a current ratio of 0.52 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share 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 business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter last year, the firm earned $0.56 earnings per share. The firm’s revenue for the quarter 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. As a group, analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Transcend Capital Advisors LLC raised its holdings in Southwest Airlines by 4.2% in the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after acquiring an additional 272 shares during the period. Ameriflex Group Inc. boosted its holdings in shares of Southwest Airlines by 7.1% during the second quarter. Ameriflex Group Inc. now owns 4,690 shares of the airline’s stock worth $148,000 after acquiring an additional 310 shares during the period. Asset Management One Co. Ltd. grew its position in shares of Southwest Airlines by 1.7% in the fourth quarter. Asset Management One Co. Ltd. now owns 19,268 shares of the airline’s stock valued at $792,000 after purchasing an additional 315 shares during the last quarter. Benjamin Edwards Inc. increased its stake in shares of Southwest Airlines by 1.4% during the second quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock worth $806,000 after purchasing an additional 333 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in Southwest Airlines by 2.4% during the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline’s stock worth $456,000 after purchasing an additional 341 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Key Southwest Airlines News

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.