Southwest Airlines (NYSE:LUV) Price Target Raised to $60.00

Southwest Airlines (NYSE:LUV) had its price target upped by BMO Capital Markets from $58.50 to $60.00 in a research report report published on Friday,Benzinga reports. BMO Capital Markets currently has an outperform rating on the airline’s stock.

Other research analysts also recently issued research reports about the stock. Zacks Research raised shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a report on Thursday, June 25th. UBS Group raised their price target on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Susquehanna boosted their price objective on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research report on Tuesday, July 7th. Jefferies Financial Group upped their price objective on Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a research note on Wednesday, July 1st. Finally, TD Cowen increased their target price on Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $49.55.

Southwest Airlines Stock Performance

LUV opened at $45.19 on Friday. The firm has a market cap of $22.11 billion, a P/E ratio of 27.72, a PEG ratio of 0.38 and a beta of 1.12. Southwest Airlines has a 1-year low of $28.98 and a 1-year high of $55.11. The company has a 50 day simple moving average of $46.01 and a two-hundred day simple moving average of $44.30. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Equities analysts forecast that Southwest Airlines will post 3.59 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Thursday, June 11th. Southwest Airlines’s dividend payout ratio (DPR) is presently 44.17%.

Institutional Trading of Southwest Airlines

Several hedge funds have recently bought and sold shares of LUV. AQR Capital Management LLC grew 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 worth $1,303,000 after purchasing an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Southwest Airlines by 5.4% during 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 buying an additional 3,141 shares in the last quarter. Empowered Funds LLC boosted 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 valued at $250,000 after buying an additional 527 shares during the period. EverSource Wealth Advisors LLC boosted its position in Southwest Airlines by 73.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after buying an additional 2,408 shares during the period. Finally, First Trust Advisors LP boosted its position in Southwest Airlines by 47.4% in the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after buying an additional 98,986 shares during the period. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

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.