Brokerages Set Southwest Airlines Co. (NYSE:LUV) Target Price at $48.43

Southwest Airlines Co. (NYSE:LUV) has been assigned a consensus recommendation of “Hold” from the twenty-two research firms that are currently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $49.58.

A number of brokerages have recently issued reports on LUV. Barclays increased their price objective on shares of Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Zacks Research raised shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. HSBC upgraded shares of Southwest Airlines from a “reduce” rating to a “hold” rating and boosted their price target for the stock from $24.40 to $36.10 in a research note on Friday, April 24th. Morgan Stanley raised their price objective on Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday. Finally, BMO Capital Markets boosted their target price on Southwest Airlines from $45.00 to $58.50 and gave the stock an “outperform” rating in a research report on Thursday, July 2nd.

Southwest Airlines News Summary

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

• Positive Sentiment: Raymond James raised its price target on Southwest Airlines to $60 and reiterated an outperform-style view, signaling continued upside confidence in the airline’s earnings and valuation. Southwest Airlines (NYSE:LUV) Price Target Raised to $60.00 at Raymond James Financial
• Positive Sentiment: Morgan Stanley lifted its target to $65 from $60 and maintained an overweight rating, reinforcing bullish sentiment from Wall Street. Southwest Airlines had its price target raised by Morgan Stanley from $60.00 to $65.00
• Positive Sentiment: Susquehanna increased its price target to $55 from $44, suggesting meaningful upside even while keeping a neutral rating. Southwest Airlines had its price target raised by Susquehanna from $44.00 to $55.00
• Positive Sentiment: Klarna announced a long-term partnership with Southwest to offer flexible payment options to customers, which could support bookings and improve the customer experience. Klarna lands Southwest Airlines, bringing flexible payments to millions of US travelers this fall
• Neutral Sentiment: Zacks highlighted Southwest as a strong long-term momentum stock, reflecting favorable technical/quantitative sentiment but not a direct operational catalyst. Why Southwest Airlines (LUV) is a Top Momentum Stock for the Long-Term
• Negative Sentiment: U.S. airlines spent $6.66 billion on jet fuel in May, an 84% year-over-year increase tied to the Iran war and higher fuel costs, which could pressure Southwest’s margins and earnings if the trend persists. US airlines’ spent over $6 billion on monthly fuel in May amid Iran war — up 84% from year ago

Institutional Trading of Southwest Airlines

A number of large investors have recently made changes to their positions in LUV. SG Americas Securities LLC lifted its position in shares of Southwest Airlines by 2,468.4% during the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after purchasing an additional 3,606,255 shares during the last quarter. Nordea Investment Management AB bought a new position in shares of Southwest Airlines in the fourth quarter worth about $31,968,000. North Dakota State Investment Board purchased a new position in Southwest Airlines in the 4th quarter worth about $2,189,000. Altfest L J & Co. Inc. bought a new stake in Southwest Airlines during the 4th quarter valued at about $1,403,000. Finally, iSAM Funds UK Ltd purchased a new stake in Southwest Airlines in the 3rd quarter valued at about $1,479,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Stock Performance

NYSE:LUV opened at $49.41 on Friday. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The stock has a 50-day simple moving average of $43.80 and a two-hundred day simple moving average of $43.71. The firm has a market capitalization of $24.15 billion, a PE ratio of 31.87, a P/E/G ratio of 0.51 and a beta of 1.12. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter last year, the company earned ($0.13) earnings per share. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts forecast that Southwest Airlines will post 3.02 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were issued a $0.18 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio (DPR) is 46.45%.

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.