Southwest Airlines (NYSE:LUV) Price Target Raised to $55.00

Southwest Airlines (NYSE:LUV) had its price target upped by research analysts at Susquehanna from $45.00 to $55.00 in a report issued on Tuesday,Benzinga reports. The brokerage presently has a “neutral” rating on the airline’s stock. Susquehanna’s target price would indicate a potential upside of 8.54% from the company’s previous close.

Other equities research analysts have also recently issued research reports about the stock. Evercore ISI increased their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research report on Thursday, January 29th. TD Cowen upped their target price on Southwest Airlines from $42.00 to $50.00 and gave the company a “hold” rating in a research report on Friday. Wall Street Zen upgraded shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. UBS Group upped their price target on shares of Southwest Airlines from $45.00 to $51.00 and gave the company a “neutral” rating in a report on Monday. Finally, Bank of America raised their target price on Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $45.76.

Southwest Airlines Price Performance

LUV traded up $1.03 on Tuesday, hitting $50.67. 1,029,198 shares of the company’s stock traded hands, compared to its average volume of 9,917,168. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. The company’s 50 day simple moving average is $41.04 and its 200-day simple moving average is $35.27. Southwest Airlines has a one year low of $23.82 and a one year high of $50.93. The firm has a market cap of $26.20 billion, a price-to-earnings ratio of 60.53, a P/E/G ratio of 0.37 and a beta of 1.16.

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

Institutional Trading of Southwest Airlines

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC grew its position in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after purchasing an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC raised its holdings in Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after purchasing an additional 527 shares in the last quarter. Janney Montgomery Scott LLC boosted its holdings in Southwest Airlines by 11.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock valued at $373,000 after purchasing an additional 1,136 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. grew its holdings in Southwest Airlines by 3.0% during the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 65,558 shares of the airline’s stock worth $2,127,000 after acquiring an additional 1,933 shares during the period. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

More Southwest Airlines News

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

• Positive Sentiment: Q4 2025: LUV reported $7.44B revenue and EPS of $0.58, beating consensus EPS and showing year-over-year revenue growth; the company issued FY‑2026 EPS guidance that implies stronger profitability ahead — a primary driver of the rally. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Positive Sentiment: Unusual options activity: traders bought ~52,057 call options (≈94% above average), indicating large speculative or hedged bullish positions that can amplify intraday upside.
• Positive Sentiment: Zacks and other screeners added LUV to several top lists (momentum, value, income / Rank #1 strong-buy additions), which can attract retail/momentum flows and algorithmic buying. Why Southwest Airlines (LUV) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Analyst moves: UBS raised its price target to $51 (neutral) and multiple outlets report other target upgrades (including a $55 target published by some services) — these raises help sentiment and can support further buying. Benzinga Coverage of Analyst Moves
• Positive Sentiment: BMO upgraded Southwest and industry commentary (e.g., Barchart) highlighted a strong one‑day rebound and signs of a 2026 turnaround, reinforcing narrative that operations and demand are improving. This 1 Overlooked Airline Stock to Be the Best Bet on a Turnaround in 2026 Southwest Airlines Upgraded at BMO Capital Markets
• Neutral Sentiment: A seat-overhaul / customer-loyalty story is getting coverage as management tests product changes to lift yields and repeat business — strategic but longer‑term for the stock. Southwest Airlines Seat Overhaul Tests Earnings Power And Customer Loyalty
• Negative Sentiment: Revenue slightly missed consensus ($7.44B vs. ~$7.51B est.), and airline margins remain thin — these near-term operational headwinds temper how much upside the EPS beat can sustain. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Negative Sentiment: Jefferies reiteration/target shift to $48 (hold) implies limited near-term upside from current levels and gives institutional investors a cautious data point. Benzinga Coverage of Jefferies Rating

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.