Southwest Airlines (NYSE:LUV) Upgraded at UBS Group

UBS Group upgraded shares of Southwest Airlines (NYSE:LUV) from a neutral rating to a buy rating in a research report report published on Tuesday, MarketBeat Ratings reports. They currently have $73.00 target price on the airline’s stock, up from their prior target price of $51.00.

A number of other equities research analysts have also recently weighed in on LUV. Sanford C. Bernstein lifted their price objective on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Morgan Stanley upped their price target on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Barclays upgraded shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. Finally, Susquehanna upped their target price on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $48.14.

Southwest Airlines Stock Performance

LUV opened at $52.08 on Tuesday. The business’s 50 day moving average is $45.19 and its 200-day moving average is $36.96. The stock has a market cap of $25.59 billion, a PE ratio of 62.00, a price-to-earnings-growth ratio of 0.39 and a beta of 1.15. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm’s revenue was up 7.4% compared to the same quarter last year. During the same period last year, the firm earned $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s payout ratio is presently 85.71%.

Hedge Funds Weigh In On Southwest Airlines

Institutional investors have recently bought and sold shares of the stock. GHP Investment Advisors Inc. purchased a new stake in Southwest Airlines during the fourth quarter valued at about $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $26,000. Optima Capital LLC purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at approximately $27,000. Finally, Lodestone Wealth Management LLC acquired a new position in Southwest Airlines in the 4th quarter worth approximately $29,000. Hedge funds and other institutional investors 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.