Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, UBS Group Analyst Says

Southwest Airlines (NYSE:LUV) had its price objective lifted by equities researchers at UBS Group from $53.00 to $61.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a “buy” rating on the airline’s stock. UBS Group’s price objective points to a potential upside of 23.59% from the stock’s previous close.

A number of other research firms have also recently issued reports on LUV. Susquehanna lowered their target price on Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a report on Thursday, April 2nd. The Goldman Sachs Group decreased their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. Argus cut their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. Weiss Ratings downgraded Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. Finally, Raymond James Financial lifted their price objective on shares of Southwest Airlines from $45.00 to $55.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Nine investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $44.95.

Southwest Airlines Price Performance

NYSE LUV opened at $49.36 on Tuesday. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The stock has a market cap of $24.12 billion, a price-to-earnings ratio of 31.95, a PEG ratio of 0.50 and a beta of 1.15. The business has a 50 day simple moving average of $41.52 and a 200 day simple moving average of $42.82. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11.

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

Hedge Funds Weigh In On Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its holdings in shares of Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after purchasing an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after buying an additional 3,141 shares during the period. Empowered Funds LLC lifted its position in shares of Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after buying an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of Southwest Airlines by 73.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after acquiring an additional 2,408 shares during the period. Finally, First Trust Advisors LP boosted its stake in shares of Southwest Airlines by 47.4% during the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after acquiring an additional 98,986 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.