Citigroup Cuts Southwest Airlines (NYSE:LUV) Price Target to $50.00

Southwest Airlines (NYSE:LUV) had its price objective trimmed by Citigroup from $55.00 to $50.00 in a research note published on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the airline’s stock.

Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company boosted their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Bank of America lifted their target price on Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 1st. BMO Capital Markets boosted their target price on Southwest Airlines from $45.00 to $58.50 and gave the company an “outperform” rating in a report on Thursday, July 2nd. Weiss Ratings raised Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, July 21st. Finally, Barclays raised their price target on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Price Performance

LUV stock opened at $45.19 on Friday. The stock has a market cap of $22.11 billion, a price-to-earnings ratio of 27.72, a PEG ratio of 0.38 and a beta of 1.12. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54. The business has a 50 day moving average price of $46.01 and a 200 day moving average price of $44.30.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share 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 company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. During the same quarter last year, the company earned $0.43 earnings per share. The firm’s revenue for the quarter was up 16.4% on a year-over-year basis. 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. Equities research analysts anticipate that Southwest Airlines will post 3.59 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s dividend payout ratio (DPR) is 44.17%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently modified their holdings of the stock. Tema ETFs LLC grew its position in Southwest Airlines by 9.3% in the 2nd quarter. Tema ETFs LLC now owns 10,181 shares of the airline’s stock valued at $524,000 after buying an additional 870 shares during the last quarter. Wealthcare Advisory Partners LLC acquired a new stake in shares of Southwest Airlines in the 2nd quarter worth $232,000. Paladin Wealth LLC lifted its stake in shares of Southwest Airlines by 16.1% in the 2nd quarter. Paladin Wealth LLC now owns 13,876 shares of the airline’s stock worth $714,000 after acquiring an additional 1,920 shares during the period. Everhart Financial Group Inc. purchased a new stake in shares of Southwest Airlines in the second quarter valued at about $279,000. Finally, Valeo Financial Advisors LLC increased its stake in shares of Southwest Airlines by 21.8% during the second quarter. Valeo Financial Advisors LLC now owns 9,647 shares of the airline’s stock worth $496,000 after acquiring an additional 1,727 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines News Summary

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

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.