Southwest Airlines (NYSE:LUV) Stock Gets Price Target Reduction from JPMorgan Chase & Co.

Southwest Airlines (NYSE:LUV) had its price objective decreased by JPMorgan Chase & Co. from $59.00 to $58.00 in a research note released on Friday,Benzinga reports. JPMorgan Chase & Co. currently has an overweight rating on the airline’s stock.

Several other equities analysts also recently commented on the stock. Weiss Ratings raised shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 18th. Evercore increased their target price on shares of Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Susquehanna cut their target price on Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. UBS Group cut their target price on Southwest Airlines from $53.00 to $52.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. Finally, The Goldman Sachs Group boosted their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a report on Thursday, July 2nd. Ten equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines has an average rating of “Hold” and an average target price of $47.45.

Southwest Airlines Stock Down 0.0%

Shares of NYSE LUV opened at $41.74 on Friday. The firm’s fifty day moving average is $40.57 and its 200 day moving average is $42.92. Southwest Airlines has a 52 week low of $29.26 and a 52 week high of $55.11. The company has a quick ratio of 0.40, a current ratio of 0.47 and a debt-to-equity ratio of 0.51. The company has a market cap of $20.44 billion, a price-to-earnings ratio of 20.07, a PEG ratio of 1.19 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.09. The business had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.25 billion. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The firm’s revenue for the quarter was up 21.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.11 EPS. On average, equities research analysts expect that Southwest Airlines will post 2.69 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio (DPR) is presently 34.62%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently made changes to their positions in the company. Archer Investment Corp bought a new position in Southwest Airlines in the second quarter worth $32,000. Fiduciary Financial Advisors bought a new stake in shares of Southwest Airlines during the 2nd quarter valued at $32,000. Scarborough Advisors LLC bought a new stake in shares of Southwest Airlines during the 1st quarter valued at $28,000. Grove Bank & Trust boosted its holdings in shares of Southwest Airlines by 109.4% during the 2nd quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock valued at $45,000 after buying an additional 455 shares in the last quarter. Finally, MidFirst Bank purchased a new stake in shares of Southwest Airlines in the 2nd quarter worth about $48,000. 80.82% of the stock is currently owned by institutional investors.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Southwest reported third-quarter adjusted earnings of $0.66 per share, ahead of the roughly $0.57 consensus, while revenue rose 21.2% year over year to a record $8.42 billion. Higher fares, strong demand and a 21.6% increase in revenue per available seat mile helped expand margins despite higher fuel expenses. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Management indicated that travel demand remains constructive and forecast fourth-quarter unit revenue growth of approximately 19% to 21%, supporting optimism that Southwest’s pricing and commercial initiatives are gaining traction. Southwest Airlines Gains After Q3 Earnings Beat and Record Revenue
• Positive Sentiment: UBS raised its price target from $52 to $54 and assigned a Buy rating, while JPMorgan maintained an Overweight rating and still sees substantial upside with a $58 target. UBS Southwest Airlines Rating
• Neutral Sentiment: Analyst sentiment remains mixed: Susquehanna reduced its target to $43, and Wells Fargo initiated a Hold rating, suggesting that much of the earnings improvement may already be reflected in the shares.
• Negative Sentiment: Southwest lowered its fourth-quarter 2026 adjusted EPS outlook to $0.55-$0.80, below the $0.88 consensus, and set full-year EPS guidance at $2.60-$2.85 versus an $2.85 estimate. Southwest Cuts Outlook as US Airlines Battle Fuel Costs
• Negative Sentiment: Fuel costs increased by about $821 million, and management is planning for elevated jet-fuel prices to persist into 2027. Industry-wide pressure to raise fares could support revenue but risks weakening demand and profitability. US Airlines Favor Higher Fares Over Fuller Planes

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.