Southwest Airlines (NYSE:LUV) Sets New 52-Week High on Analyst Upgrade

Shares of Southwest Airlines Co. (NYSE:LUV) reached a new 52-week high during mid-day trading on Wednesday after Susquehanna raised their price target on the stock from $45.00 to $55.00. Susquehanna currently has a neutral rating on the stock. Southwest Airlines traded as high as $51.21 and last traded at $51.1840, with a volume of 10882626 shares changing hands. The stock had previously closed at $49.64.

Other equities analysts have also recently issued research reports about the stock. Zacks Research raised shares of Southwest Airlines from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 30th. Jefferies Financial Group increased their price target on Southwest Airlines from $45.00 to $48.00 and gave the stock a “hold” rating in a report on Monday. Citigroup raised their price objective on Southwest Airlines from $38.00 to $44.00 and gave the company a “neutral” rating in a research note on Wednesday, January 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a research report on Monday, December 29th. Finally, Wall Street Zen raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $45.76.

Hedge Funds Weigh In On Southwest Airlines

Several large investors have recently bought and sold shares of the stock. AQR Capital Management LLC raised its holdings in shares of Southwest Airlines by 100.6% in the first 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 last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Southwest Airlines by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after purchasing an additional 3,141 shares in the last quarter. Empowered Funds LLC grew its position in Southwest Airlines by 7.6% in the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after purchasing an additional 527 shares in the last quarter. Janney Montgomery Scott LLC increased its stake in Southwest Airlines by 11.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock valued at $373,000 after buying an additional 1,136 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Southwest Airlines by 3.0% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 65,558 shares of the airline’s stock worth $2,127,000 after buying an additional 1,933 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Stock Performance

The company’s 50-day simple moving average is $41.72 and its 200 day simple moving average is $35.50. The stock has a market cap of $27.18 billion, a P/E ratio of 62.56, a PEG ratio of 0.37 and a beta of 1.15. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.Southwest Airlines’s revenue was up 7.4% on a year-over-year basis. During the same period last year, the business posted $0.56 earnings per share. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, sell-side analysts expect that Southwest Airlines Co. will post 1.55 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s payout ratio is presently 85.71%.

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.