Southwest Airlines (NYSE:LUV) Upgraded at Rothschild & Co Redburn

Rothschild & Co Redburn upgraded shares of Southwest Airlines (NYSE:LUV) from a sell rating to a neutral rating in a report published on Friday, Marketbeat reports. They currently have $40.00 price target on the airline’s stock, up from their previous price target of $35.00.

Several other research analysts also recently issued reports on the stock. Barclays lowered their price objective on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. TD Cowen reduced their target price on shares of Southwest Airlines from $53.00 to $48.00 and set a “buy” rating for the company in a report on Monday, August 24th. Wall Street Zen cut shares of Southwest Airlines from a “buy” rating to a “hold” rating in a report on Saturday, September 5th. Raymond James Financial decreased their target price on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a research note on Monday, August 24th. Finally, BMO Capital Markets raised their price target on Southwest Airlines from $58.50 to $60.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines currently has a consensus rating of “Hold” and an average price target of $48.30.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $41.02 on Friday. The stock has a market cap of $20.07 billion, a P/E ratio of 25.17, a P/E/G ratio of 0.38 and a beta of 1.13. Southwest Airlines has a twelve month low of $29.26 and a twelve month high of $55.11. The stock has a 50 day moving average of $43.26 and a two-hundred day moving average of $42.76. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV) last announced its earnings results 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. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same period last year, the firm posted $0.43 earnings per share. The company’s revenue for the quarter 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. On average, research analysts forecast that Southwest Airlines will post 3.28 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s payout ratio is currently 44.17%.

Hedge Funds Weigh In On Southwest Airlines

A number of large investors have recently bought and sold shares of the company. MCF Advisors LLC grew its position in shares of Southwest Airlines by 28.5% during the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after buying an additional 203 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Southwest Airlines by 1.5% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after acquiring an additional 235 shares during the period. Greenleaf Trust grew its holdings in shares of Southwest Airlines by 4.0% during the second quarter. Greenleaf Trust now owns 8,015 shares of the airline’s stock valued at $412,000 after purchasing an additional 311 shares during the last quarter. Grove Bank & Trust raised its position in shares of Southwest Airlines by 109.4% during the 2nd quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock worth $45,000 after purchasing an additional 455 shares during the period. Finally, Resona Asset Management Co. Ltd. lifted its holdings in shares of Southwest Airlines by 8.0% in the 1st quarter. Resona Asset Management Co. Ltd. now owns 6,738 shares of the airline’s stock worth $245,000 after purchasing an additional 498 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. Operating under the Southwest Airlines brand, the company provides scheduled air transportation for domestic and international travelers and also offers air cargo services.

Southwest was founded in 1967 and began commercial service in 1971, initially connecting Dallas, Houston and San Antonio. The airline expanded its network across the United States and now serves numerous destinations in the United States, Mexico, the Caribbean, Central America and other nearby international markets.