Bank of America Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its target price boosted by Bank of America from $40.00 to $45.00 in a research note issued to investors on Wednesday,MarketScreener reports. Bank of America‘s target price points to a potential downside of 13.00% from the company’s current price.

A number of other equities research analysts have also commented on LUV. Weiss Ratings lowered Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. The Goldman Sachs Group decreased their target price on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a report on Wednesday, April 1st. JPMorgan Chase & Co. lowered their target price on Southwest Airlines from $58.00 to $56.00 in a research note on Friday, March 27th. Argus cut their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 24th. Finally, Wells Fargo & Company upped their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $47.20.

Southwest Airlines Stock Up 0.6%

LUV opened at $51.73 on Wednesday. The firm has a market cap of $25.28 billion, a price-to-earnings ratio of 33.43, a PEG ratio of 0.54 and a beta of 1.15. 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 firm’s 50-day simple moving average is $42.76 and its 200-day simple moving average is $43.40. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11.

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

Hedge Funds Weigh In On Southwest Airlines

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC raised its holdings in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after purchasing an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of 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 valued at $2,050,000 after purchasing an additional 3,141 shares during the last quarter. Empowered Funds LLC grew its position in shares of Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after buying an additional 527 shares during the period. EverSource Wealth Advisors LLC grew its position 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 buying an additional 2,408 shares during the period. Finally, First Trust Advisors LP raised its stake in shares of Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.