Southwest Airlines (NYSE:LUV) Stock Price Breaks Above Two Hundred Day Moving Average – Here’s Why

Southwest Airlines Co. (NYSE:LUV) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $43.52 and traded as high as $46.74. Southwest Airlines shares last traded at $46.4550, with a volume of 8,451,761 shares changing hands.

Southwest Airlines News Roundup

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

• Positive Sentiment: Southwest’s third-quarter revenue rose 21.2%, supported by stronger fares and record unit revenue. The company also reported improving profitability and cash flow, though higher fuel costs limited margin momentum. Southwest Q3 Revenue Surges While Fuel Costs Test Margin Momentum
• Positive Sentiment: Zacks Research upgraded its rating on LUV from “strong sell” to “hold,” a modest improvement in analyst sentiment. Zacks Research rating update
• Neutral Sentiment: Falling oil prices may provide some relief to airline fuel expenses, but the cited article discusses travel stocks broadly rather than a specific Southwest catalyst. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Fuel-cost pressure, execution risks and valuation concerns temper the growth story. Zacks Research also cut several earnings estimates, including FY2026 and FY2027, despite raising some quarterly projections—suggesting uncertainty about how consistently revenue growth will translate into profits. Is LUV Stock Worth Buying as Growth Outruns Execution Risks?

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on LUV. Barclays lowered their target price on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a report on Friday, September 11th. Zacks Research upgraded shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Wednesday. Tigress Financial started coverage on shares of Southwest Airlines in a research report on Friday, October 30th. They issued a “buy” rating and a $62.00 price objective for the company. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $35.00 to $40.00 in a research note on Friday, September 18th. Finally, TD Cowen boosted their price objective on shares of Southwest Airlines from $47.00 to $48.00 and gave the stock a “buy” rating in a research note on Thursday, October 29th. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and a consensus price target of $48.20.

Southwest Airlines Stock Up 0.0%

The company has a quick ratio of 0.40, a current ratio of 0.47 and a debt-to-equity ratio of 0.51. The stock has a fifty day moving average price of $41.16 and a two-hundred day moving average price of $43.54. The company has a market cap of $21.77 billion, a price-to-earnings ratio of 16.72, a P/E/G ratio of 0.64 and a beta of 1.23.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.57 by $0.09. The firm had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The business’s revenue was up 21.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.11 EPS. As a group, sell-side analysts expect that Southwest Airlines Co. will post 2.78 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of LUV. Scarborough Advisors LLC bought a new stake in Southwest Airlines during the first quarter worth $28,000. Fiduciary Financial Advisors purchased a new position in shares of Southwest Airlines during the 2nd quarter valued at $32,000. Archer Investment Corp bought a new position in shares of Southwest Airlines in the second quarter worth approximately $32,000. Grove Bank & Trust raised its position in Southwest Airlines by 109.4% during the second quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock valued at $45,000 after purchasing an additional 455 shares in the last quarter. Finally, MidFirst Bank purchased a new position in shares of Southwest Airlines during the second quarter worth approximately $48,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.