Southwest Airlines (NYSE:LUV) Price Target Cut to $42.00 by Analysts at Susquehanna

Southwest Airlines (NYSE:LUV) had its price target cut by Susquehanna from $55.00 to $42.00 in a research report sent to investors on Thursday,MarketScreener reports. They currently have a neutral rating on the airline’s stock.

A number of other research firms also recently weighed in on LUV. Jefferies Financial Group boosted their price target on shares of Southwest Airlines from $41.00 to $42.00 and gave the stock a “hold” rating in a research note on Tuesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Friday, March 27th. BMO Capital Markets dropped their target price on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a research report on Tuesday. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Finally, Bank of America reduced their price target on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating on the stock in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $43.72.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $37.66 on Thursday. The business’s 50-day simple moving average is $45.61 and its 200 day simple moving average is $39.34. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock has a market cap of $18.49 billion, a price-to-earnings ratio of 44.83, a P/E/G ratio of 0.29 and a beta of 1.19. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $55.11.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the previous year, the business posted $0.56 EPS. The company’s quarterly revenue was up 7.4% compared to the same quarter last year. 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 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Institutional Trading of Southwest Airlines

A number of large investors have recently made changes to their positions in the company. AQR Capital Management LLC grew its stake in Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after acquiring an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after purchasing an additional 3,141 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after purchasing an additional 527 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of Southwest Airlines in the 2nd quarter valued at approximately $211,000. Finally, J.W. Cole Advisors Inc. grew its position in shares of Southwest Airlines by 6.0% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 8,530 shares of the airline’s stock valued at $277,000 after purchasing an additional 481 shares during the period. Institutional investors own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Zacks highlights LUV as a “strong value stock,” arguing the shares look attractive on style/value metrics relative to the airline group, which could support longer-term upside for value-focused investors. Here’s Why Southwest Airlines (LUV) is a Strong Value Stock
• Positive Sentiment: Jefferies nudged its price target up slightly (from $41 to $42) and kept a Hold — a modest vote of stability that suggests some dealers see the hit as selectively priced-in rather than structural. Jefferies adjusts price target on Southwest Airlines to $42
• Neutral Sentiment: Bank of America and other analysts note that strong travel demand and the ability to raise fares could offset some of the margin pressure from higher fuel — but this is conditional and may not fully offset rapid fuel spikes. High Fuel Costs Weigh on Airlines but Demand May Offset Impact, BofA Says
• Neutral Sentiment: Several firms (BMO, Raymond James) trimmed price targets but kept Outperform ratings — a mixed signal: conviction in recovery remains, but near-term margin risk forces lower valuation. BMO lowers PT on Southwest to $45 Raymond James lowers PT on Southwest to $45
• Negative Sentiment: Jet fuel and crude prices have surged (reports of ~100% jet-fuel increases in some contexts), directly raising operating costs and weighing on airline margins — a core near-term negative for Southwest’s profitability. Jet fuel prices are up 100%, oil prices keep surging, and airlines are paying the price
• Negative Sentiment: Geopolitical comments about potential conflict with Iran have spooked markets and raised jet-fuel cost concerns, triggering broad airline sell-offs that include Southwest. This is a direct catalyst for today’s weakness. Airline Stocks Tumble as Trump’s Iran War Comments Spark Jet Fuel Cost Concerns
• Negative Sentiment: Multiple firms cut price targets and one notable sell rating (Goldman Sachs lowered its PT to $30 and maintains Sell); Bank of America also moved to Underperform — analyst downgrades add selling pressure and reduce conviction among institutional holders. Goldman lowers PT on Southwest to $30 (Sell) BofA lowers PT to $40 (Underperform)
• Negative Sentiment: Additional coverage notes tie the fuel spike directly to Southwest’s near-term cost outlook and possible margin compression; that macro-driven risk is the dominant near-term driver for investor sentiment. Airline Stocks Tumble as United (UAL) and Southwest (LUV) Face Soaring Jet Fuel Crisis

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.