Southwest Airlines Co. (NYSE:LUV) Receives $49.03 Average PT from Brokerages

Southwest Airlines Co. (NYSE:LUV) has received an average recommendation of “Hold” from the twenty ratings firms that are covering the company, Marketbeat reports. Three research analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation, eight have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $49.0278.

A number of research firms have weighed in on LUV. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a report on Friday, December 12th. Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Susquehanna increased their price target on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. TD Cowen raised Southwest Airlines from a “hold” rating to a “buy” rating and raised their price objective for the company from $50.00 to $66.00 in a report on Friday, February 27th. Finally, Sanford C. Bernstein upped their target price on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a research note on Thursday, November 20th.

Southwest Airlines Trading Down 1.2%

Shares of NYSE:LUV opened at $47.16 on Monday. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $55.11. The business has a 50 day moving average of $46.65 and a two-hundred day moving average of $38.23. The company has a market capitalization of $23.17 billion, a PE ratio of 56.14, a PEG ratio of 0.33 and a beta of 1.10.

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

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Several institutional investors have recently bought and sold shares of the company. MCF Advisors LLC raised its holdings in shares of Southwest Airlines by 28.5% during the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after acquiring an additional 203 shares during the last quarter. World Investment Advisors increased its position in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after purchasing an additional 210 shares in the last quarter. Parkside Financial Bank & Trust raised its stake in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock valued at $127,000 after purchasing an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its stake in Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after purchasing an additional 235 shares during the last quarter. Finally, Transcend Capital Advisors LLC lifted its holdings in Southwest Airlines by 4.2% in the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after purchasing an additional 272 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.