Analysts Set Southwest Airlines Co. (NYSE:LUV) PT at $49.55

Southwest Airlines Co. (NYSE:LUV) has been given an average recommendation of “Hold” by the twenty-two ratings firms that are covering the company, MarketBeat.com reports. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $49.5550.

A number of brokerages have weighed in on LUV. JPMorgan Chase & Co. dropped their target price on shares of Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a report on Friday, July 24th. Wells Fargo & Company lifted their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. Raymond James Financial boosted their price objective on shares of Southwest Airlines from $55.00 to $60.00 and gave the company an “outperform” rating in a research report on Monday, July 6th. Jefferies Financial Group raised their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a report on Wednesday, July 1st. Finally, BMO Capital Markets lifted their target price on Southwest Airlines from $58.50 to $60.00 and gave the company an “outperform” rating in a research note on Friday, July 24th.

Institutional Investors Weigh In On Southwest Airlines

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

Southwest Airlines Price Performance

Shares of LUV opened at $44.98 on Thursday. Southwest Airlines has a 52 week low of $28.98 and a 52 week high of $55.11. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The firm has a market cap of $22.01 billion, a price-to-earnings ratio of 27.60, a PEG ratio of 0.39 and a beta of 1.12. The stock has a 50 day moving average of $46.61 and a 200-day moving average of $44.37.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The business had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same period in the prior year, the company posted $0.43 EPS. The business’s revenue was up 16.4% compared to the same quarter last year. 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. As a group, analysts forecast that Southwest Airlines will post 3.49 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be given a dividend of $0.18 per share. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a yield of 1.6%. Southwest Airlines’s payout ratio is currently 44.17%.

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.