Southwest Airlines Co. (NYSE:LUV) Receives $49.55 Consensus Target Price from Analysts

Southwest Airlines Co. (NYSE:LUV) has received an average rating of “Hold” from the twenty-two analysts that are presently covering the company, Marketbeat.com reports. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $49.0050.

Several research firms recently weighed in on LUV. Barclays increased their target price on shares of Southwest Airlines from $56.00 to $65.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Wells Fargo & Company upped their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Citigroup reduced their target price on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Friday, July 24th. Raymond James Financial dropped their price target on Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a report on Monday, August 24th. Finally, Morgan Stanley lifted 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, July 6th.

Southwest Airlines Stock Down 0.2%

LUV opened at $39.70 on Monday. The business has a 50 day moving average of $46.59 and a 200-day moving average of $44.12. The stock has a market capitalization of $19.42 billion, a price-to-earnings ratio of 24.36, a P/E/G ratio of 0.36 and a beta of 1.14. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. Southwest Airlines has a 1-year low of $29.26 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.43 earnings per share. 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. As a group, sell-side analysts anticipate that Southwest Airlines will post 3.32 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.18 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is 44.17%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. SHP Wealth Management bought a new stake in Southwest Airlines during the 4th quarter worth about $25,000. Entrust Financial LLC bought a new position in shares of Southwest Airlines in the fourth quarter worth about $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Scarborough Advisors LLC acquired a new position in shares of Southwest Airlines during the first quarter worth approximately $28,000. Finally, DV Equities LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth approximately $30,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.