Southwest Airlines (NYSE:LUV) Given New $45.00 Price Target at BMO Capital Markets

Southwest Airlines (NYSE:LUV) had its price target reduced by BMO Capital Markets from $57.50 to $45.00 in a report published on Tuesday morning,MarketScreener reports. They currently have an outperform rating on the airline’s stock.

Other research analysts have also recently issued research reports about the stock. Citigroup cut their price target on shares of Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research note on Friday, March 20th. JPMorgan Chase & Co. raised Southwest Airlines from an “underweight” rating to an “overweight” rating and increased their target price for the stock from $36.00 to $60.00 in a report on Friday, January 9th. Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $34.00 to $56.00 in a research report on Tuesday, December 16th. Wells Fargo & Company lowered their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a research report on Monday, March 16th. Finally, The Goldman Sachs Group dropped their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $44.94.

Southwest Airlines Stock Performance

LUV stock traded up $0.50 during midday trading on Tuesday, hitting $38.07. The stock had a trading volume of 4,909,969 shares, compared to its average volume of 10,098,287. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $55.11. 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 stock has a 50-day simple moving average of $45.80 and a 200 day simple moving average of $39.36. The firm has a market capitalization of $18.70 billion, a price-to-earnings ratio of 45.32, a P/E/G ratio of 0.27 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business’s revenue was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, equities research analysts anticipate that Southwest Airlines will post 1.55 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, April 2nd. Stockholders of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s payout ratio is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SHP Wealth Management bought a new position in shares of Southwest Airlines in the fourth quarter worth about $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines in the 4th quarter worth approximately $26,000. Finally, Optima Capital LLC bought a new position in Southwest Airlines in the 4th quarter worth approximately $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

More Southwest Airlines News

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

• Positive Sentiment: Jefferies raised its price target slightly to $42 (from $41) and kept a Hold rating, giving modest upside and signaling limited near‑term downside. Article Title
• Neutral Sentiment: BMO Capital Markets cut its PT to $45 from $57.50 but maintained an Outperform rating — a sign that analysts expect recovery but have tempered upside expectations. Article Title
• Neutral Sentiment: Raymond James also trimmed its PT to $45 (from $55) while keeping an Outperform rating, mirroring BMO’s view of lower upside but continued confidence in longer‑term recovery. Article Title
• Neutral Sentiment: UBS trimmed a prior PT (reported March 23) to $56 from $59 but reiterated a Buy — a modest downgrade in expectations rather than a stance shift. Article Title
• Negative Sentiment: Goldman Sachs lowered its PT to $30 (from $32) and kept a Sell rating, implying roughly ~21% downside vs. current levels and adding bearish pressure. Article Title
• Negative Sentiment: Bank of America cut its PT to $40 and kept an Underperform rating, reducing expected upside and adding to downward pressure from institutional research. Article Title
• Negative Sentiment: Industry note — a Reuters/Yahoo piece flags rising costs and potential fare increases as the Iran war pressures carriers (cites a ~$400M overhead impact and margin risk ahead of summer), which could weigh on airline margins, including Southwest’s. Article Title

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.