Southwest Airlines (NYSE:LUV) Reaches New 52-Week High on Analyst Upgrade

Southwest Airlines Co. (NYSE:LUV) shares hit a new 52-week high on Wednesday after UBS Group upgraded the stock from a neutral rating to a buy rating. UBS Group now has a $73.00 price target on the stock, up from their previous price target of $51.00. Southwest Airlines traded as high as $55.11 and last traded at $54.18, with a volume of 12953986 shares. The stock had previously closed at $51.11.

LUV has been the subject of several other reports. BMO Capital Markets upgraded Southwest Airlines from a “market perform” rating to an “outperform” rating and increased their price target for the company from $43.00 to $57.50 in a report on Friday, January 30th. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Citigroup increased their target price on Southwest Airlines from $44.00 to $54.00 in a research note on Tuesday, February 3rd. Zacks Research raised Southwest Airlines from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 30th. Finally, Seaport Research Partners upped their price target on Southwest Airlines from $57.00 to $58.00 in a report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $48.14.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently bought and sold shares of LUV. Elevation Point Wealth Partners LLC acquired a new position in shares of Southwest Airlines in the 2nd quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new position in Southwest Airlines in the fourth quarter worth $26,000. Entrust Financial LLC acquired a new position in Southwest Airlines in the fourth quarter worth $26,000. Los Angeles Capital Management LLC bought a new stake in Southwest Airlines during the fourth quarter valued at $26,000. Finally, Corsicana & Co. acquired a new stake in shares of Southwest Airlines during the third quarter worth $27,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Stock Down 5.0%

The stock’s fifty day simple moving average is $45.19 and its two-hundred day simple moving average is $36.96. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The company has a market capitalization of $25.59 billion, a price-to-earnings ratio of 62.00, a PEG ratio of 0.39 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data 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. The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company’s revenue for the quarter was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the firm 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. On average, sell-side analysts predict that Southwest Airlines Co. will post 1.55 earnings per share for the current fiscal 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 paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio is presently 85.71%.

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.