Bank of America Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price objective raised by equities researchers at Bank of America from $40.00 to $45.00 in a research report issued on Wednesday,MarketScreener reports. Bank of America‘s target price would suggest a potential downside of 13.00% from the company’s current price.

A number of other brokerages have also recently issued reports on LUV. Wells Fargo & Company raised their target price on Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday. HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and upped their price target for the company from $24.40 to $36.10 in a research note on Friday, April 24th. Rothschild & Co Redburn increased their price target on shares of Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, March 5th. The Goldman Sachs Group reduced their price objective on shares of Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research note on Wednesday, April 1st. Finally, BNP Paribas Exane boosted their price objective on shares of Southwest Airlines from $24.00 to $33.00 and gave the company an “underperform” rating in a report on Tuesday, April 21st. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Southwest Airlines currently has a consensus rating of “Hold” and an average target price of $47.20.

Southwest Airlines Stock Performance

LUV stock opened at $51.73 on Wednesday. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. 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 company has a market cap of $25.28 billion, a P/E ratio of 33.43, a price-to-earnings-growth ratio of 0.54 and a beta of 1.15. The business’s fifty day moving average is $42.76 and its 200-day moving average is $43.40.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45. The business had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities research analysts forecast that Southwest Airlines will post 2.93 EPS for the current year.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the stock. MCF Advisors LLC boosted its stake in Southwest Airlines by 28.5% in the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after purchasing an additional 203 shares during the period. World Investment Advisors boosted its position in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after buying an additional 210 shares during the period. Parkside Financial Bank & Trust grew its holdings in shares of Southwest Airlines by 7.5% during the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after buying an additional 213 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its position in Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after buying an additional 235 shares during the last quarter. Finally, Transcend Capital Advisors LLC lifted its stake 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 in the last quarter. 80.82% of the stock is owned by institutional investors.

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.