Southwest Airlines Co. (NYSE:LUV) Given Consensus Recommendation of “Hold” by Analysts

Shares of Southwest Airlines Co. (NYSE:LUV) have been assigned a consensus rating of “Hold” from the twenty-two research firms that are covering the company, MarketBeat Ratings reports. Four analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and nine have issued a buy recommendation on the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $49.5550.

Several equities research analysts recently issued reports on LUV shares. Zacks Research raised Southwest Airlines from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 25th. Wells Fargo & Company lifted their target price on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. reduced their price objective on Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating for the company in a research report on Friday, July 24th. Jefferies Financial Group boosted their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a report on Wednesday, July 1st. Finally, HSBC upgraded shares of Southwest Airlines from a “reduce” rating to a “hold” rating and upped their target price for the stock from $24.40 to $36.10 in a research report on Friday, April 24th.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LUV. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the 4th quarter worth $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at $26,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the 4th quarter worth about $27,000. Institutional investors own 80.82% of the company’s stock.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Zacks raised its FY2028 EPS forecast to $5.83 from $5.70, while increasing its Q1 2027 estimate to $0.81 from $0.66 and Q3 2027 estimate to $1.04 from $1.01. The upgrades suggest expectations for stronger earnings growth over the next several years. Southwest Airlines analyst estimate updates
• Positive Sentiment: Lower oil prices could benefit Southwest by reducing jet-fuel expenses and supporting airline profitability if the decline persists. Oil price decline and airline beneficiaries
• Positive Sentiment: Southwest is courting business travelers with a new priority-focused offering, potentially improving its revenue mix and appeal to higher-value corporate customers. Southwest business priority program
• Neutral Sentiment: Boeing’s FAA certification of the 737 MAX 7 could eventually expand Southwest’s fleet options, but passenger service is not expected until 2027, limiting the near-term effect. Boeing 737 MAX 7 FAA certification
• Neutral Sentiment: Zacks lowered its Q2 2027 EPS forecast to $1.16 from $1.22 and Q2 2028 to $1.29 from $1.30, partly offsetting the upgrades elsewhere. The firm made no change to its “Hold” rating. Southwest Airlines Zacks estimates
• Neutral Sentiment: Changes to Southwest’s complimentary extra-seat policy may affect customer satisfaction and operating costs, but the financial impact is unclear. Southwest extra-seat policy

Southwest Airlines Stock Up 0.5%

Shares of NYSE:LUV opened at $48.93 on Thursday. The firm has a market cap of $23.94 billion, a PE ratio of 30.02, a price-to-earnings-growth ratio of 0.43 and a beta of 1.14. The company has a fifty day simple moving average of $46.97 and a 200 day simple moving average of $44.49. 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 12-month low of $28.98 and a 12-month high of $55.11.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company’s revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.43 EPS. 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. On average, equities research analysts anticipate that Southwest Airlines will post 3.49 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently declared 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. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is currently 44.17%.

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.