Jefferies Financial Group Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its target price raised by research analysts at Jefferies Financial Group from $37.00 to $44.00 in a research report issued to clients and investors on Tuesday,MarketScreener reports. The brokerage currently has a “hold” rating on the airline’s stock. Jefferies Financial Group’s target price would indicate a potential downside of 7.74% from the stock’s current price.

LUV has been the topic of several other research reports. BMO Capital Markets reduced their price objective on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 31st. Raymond James Financial boosted their price target on Southwest Airlines from $45.00 to $55.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Saturday, June 6th. HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their price objective for the company from $24.40 to $36.10 in a research report on Friday, April 24th. Finally, TD Cowen upped their target price on Southwest Airlines from $46.00 to $47.00 and gave the company a “buy” rating in a research note on Monday, April 27th. Nine analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average target price of $44.56.

Southwest Airlines Price Performance

NYSE:LUV traded up $1.61 during trading hours on Tuesday, reaching $47.69. 633,624 shares of the company traded hands, compared to its average volume of 8,592,357. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The firm’s 50-day moving average is $40.63 and its 200-day moving average is $42.38. The stock has a market cap of $23.31 billion, a P/E ratio of 30.81, a P/E/G ratio of 0.49 and a beta of 1.15. Southwest Airlines has a 1-year low of $28.98 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. The business had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business’s revenue was up 12.8% on a year-over-year basis. During the same period in the prior year, the business earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities research analysts expect that Southwest Airlines will post 2.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. SHP Wealth Management purchased a new stake in Southwest Airlines during the fourth quarter valued at about $25,000. GHP Investment Advisors Inc. purchased a new position in shares of Southwest Airlines in the 4th quarter worth about $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC purchased a new stake in shares of Southwest Airlines during the 4th quarter worth about $26,000. Finally, Optima Capital LLC acquired a new position in Southwest Airlines during the fourth quarter valued at approximately $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

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.