Brokerages Set Southwest Airlines Co. (NYSE:LUV) Price Target at $49.03

Shares of Southwest Airlines Co. (NYSE:LUV) have received a consensus rating of “Hold” from the twenty-one brokerages that are presently covering the stock, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation, eight have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $48.2895.

Several brokerages recently weighed in on LUV. Citigroup boosted their target price on shares of Southwest Airlines from $44.00 to $54.00 in a research note on Tuesday, February 3rd. Wells Fargo & Company lifted their price target on shares of Southwest Airlines from $45.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday, January 30th. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a research report on Monday, December 29th. UBS Group raised shares of Southwest Airlines from a “neutral” rating to a “buy” rating and upped their price objective for the company from $51.00 to $73.00 in a research note on Tuesday, February 17th. Finally, BMO Capital Markets upgraded shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and raised their target price for the stock from $43.00 to $57.50 in a research report on Friday, January 30th.

Hedge Funds Weigh In On Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC lifted its position in Southwest Airlines by 23.8% during the fourth quarter. Hsbc Holdings PLC now owns 939,398 shares of the airline’s stock worth $38,916,000 after buying an additional 180,619 shares during the period. SHP Wealth Management purchased a new stake in Southwest Airlines in the 4th quarter valued at about $25,000. Strategic Investment Solutions Inc. IL increased its stake in shares of Southwest Airlines by 37.9% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 7,275 shares of the airline’s stock valued at $301,000 after acquiring an additional 2,000 shares during the last quarter. MidFirst Bank acquired a new position in shares of Southwest Airlines during the 4th quarter valued at about $39,000. Finally, Corient Private Wealth LLC lifted its holdings in shares of Southwest Airlines by 25.8% during the 4th quarter. Corient Private Wealth LLC now owns 84,394 shares of the airline’s stock worth $3,284,000 after acquiring an additional 17,320 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $41.47 on Monday. The firm has a market capitalization of $20.38 billion, a PE ratio of 49.37, a P/E/G ratio of 0.31 and a beta of 1.10. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $55.11. The firm’s 50-day simple moving average is $46.70 and its 200 day simple moving average is $38.34. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping 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 company had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the previous year, the business posted $0.56 earnings per share. The firm’s quarterly revenue 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. On average, equities research analysts predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be issued a dividend of $0.18 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

More Southwest Airlines News

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

• Positive Sentiment: Analyst support and upside targets — Several firms still carry Overweight/Outperform views and the recent compilation of analyst targets shows a median near $49, implying potential upside from current levels. Quiver Quant: Analyst Ratings & Targets
• Neutral Sentiment: Longer-term value debate — Some commentary argues the pullback could create a buying opportunity for investors focused on the airline’s multi-year recovery narrative, but this is contested and depends on fuel and execution risks. Yahoo Finance: Is LUV Still Attractive?
• Negative Sentiment: Geopolitical escalation raises fuel-cost and demand fears — Coverage links the U.S.–Israel–Iran tensions to a surge in crude/jet-fuel expectations and a sector-wide selloff, pressuring Southwest because fuel is a major cost and demand for discretionary travel can wobble in crises. Benzinga: Why LUV Is Falling
• Negative Sentiment: Broader oil-driven sector pain — Market notes and price-action analysis tie LUV’s drop to a crude-driven rout across carriers; higher fuel translates to margin risk and triggers rotation away from fuel-sensitive travel names. Quiver Quant: Oil Pressure on Airlines
• Negative Sentiment: Execution and sentiment concerns — Analysis highlights a “double whammy” of Southwest’s structural/logistics challenges (model overhaul) plus renewed fuel inflation that could squeeze margins and investor confidence. Forbes: How Low Can LUV Go?
• Negative Sentiment: Reputational/retail risk from policy changes — Coverage of new customer policies has sparked negative consumer reaction, which can weigh on demand and brand premium that historically differentiated Southwest. TheStreet: Policy Backlash
• Negative Sentiment: Mixed institutional activity & price-target shifts — Large institutional trimming and at least one price-target adjustment (Rothschild raised its target but kept a sell stance) add to near-term uncertainty about sentiment among big holders. Benzinga: Price Target Note

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.