Analysts Set Southwest Airlines Co. (NYSE:LUV) PT at $44.11

Shares of Southwest Airlines Co. (NYSE:LUV) have been assigned an average recommendation of “Hold” from the twenty-two research firms that are currently covering the company, Marketbeat reports. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $44.1050.

A number of equities analysts recently issued reports on the company. Argus cut their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a report on Friday, April 24th. Seaport Research Partners raised their price objective on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Citigroup dropped their price objective on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating on the stock in a research note on Friday, March 20th. Rothschild & Co Redburn raised their price objective on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, March 5th. Finally, The Goldman Sachs Group dropped their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research note on Wednesday, April 1st.

Hedge Funds Weigh In On Southwest Airlines

Several large investors have recently bought and sold shares of LUV. AQR Capital Management LLC lifted its stake in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after acquiring an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in 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 valued at $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC lifted its stake in Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after acquiring an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Southwest Airlines by 73.4% during the 2nd 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 in the last quarter. Finally, First Trust Advisors LP lifted its stake in Southwest Airlines by 47.4% during the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after acquiring an additional 98,986 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Price Performance

Shares of LUV opened at $40.85 on Friday. Southwest Airlines has a 12-month low of $28.98 and a 12-month high of $55.11. The business’s fifty day moving average is $39.47 and its 200 day moving average is $41.13. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The stock has a market cap of $19.96 billion, a P/E ratio of 26.35, a P/E/G ratio of 0.45 and a beta of 1.12.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (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 for the quarter, compared to analysts’ expectations of $8.46 billion. During the same period last year, the business earned ($0.13) EPS. Southwest Airlines’s quarterly revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Sell-side analysts anticipate that Southwest Airlines will post 2.76 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, July 2nd. Shareholders of record on Thursday, June 11th will be paid a dividend of $0.18 per share. The ex-dividend date is Thursday, June 11th. This represents a $0.72 annualized dividend and a yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is 46.45%.

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.