Southwest Airlines (NYSE:LUV) Price Target Cut to $58.00 by Analysts at JPMorgan Chase & Co.

Southwest Airlines (NYSE:LUV) had its price target reduced by analysts at JPMorgan Chase & Co. from $59.00 to $58.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has an “overweight” rating on the airline’s stock. JPMorgan Chase & Co.‘s price objective points to a potential upside of 40.90% from the stock’s previous close.

A number of other equities research analysts have also weighed in on the company. Rothschild & Co Redburn raised Southwest Airlines from a “sell” rating to a “neutral” rating and boosted their target price for the company from $35.00 to $40.00 in a research note on Friday, September 18th. Bank of America raised their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a report on Wednesday, July 1st. Wall Street Zen cut shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. UBS Group decreased their price objective on shares of Southwest Airlines from $53.00 to $52.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. Finally, Morgan Stanley upped their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $47.36.

Southwest Airlines Price Performance

LUV stock traded down $0.86 during mid-day trading on Friday, reaching $41.16. 3,707,104 shares of the company traded hands, compared to its average volume of 7,425,341. The company has a fifty day moving average price of $40.62 and a 200-day moving average price of $42.89. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11. The company has a market capitalization of $20.14 billion, a P/E ratio of 25.24, a P/E/G ratio of 1.06 and a beta of 1.16. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.07%. The firm had revenue of $8.42 billion for the quarter, compared to the consensus estimate of $8.25 billion. During the same period in the prior year, the firm posted $0.11 earnings per share. The company’s revenue for the quarter was up 21.2% on a year-over-year basis. As a group, analysts anticipate that Southwest Airlines will post 2.91 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC increased its holdings in shares of Southwest Airlines by 954.1% during the first quarter. NewEdge Advisors LLC now owns 127,331 shares of the airline’s stock valued at $4,784,000 after acquiring an additional 115,251 shares in the last quarter. Gradient Investments LLC raised its position in shares of Southwest Airlines by 19.3% in the 2nd quarter. Gradient Investments LLC now owns 539,612 shares of the airline’s stock worth $27,747,000 after purchasing an additional 87,146 shares during the last quarter. WINTON GROUP Ltd boosted its stake in Southwest Airlines by 218.8% in the 2nd quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline’s stock worth $4,825,000 after purchasing an additional 64,402 shares in the last quarter. PDT Partners LLC bought a new position in Southwest Airlines in the 2nd quarter worth about $17,913,000. Finally, Bank of New York Mellon Corp boosted its stake in Southwest Airlines by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 3,924,407 shares of the airline’s stock worth $147,440,000 after purchasing an additional 176,742 shares in the last quarter. Hedge funds and other institutional investors 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: Southwest reported record third-quarter revenue of approximately $8.42 billion, up 21.2% year over year. Adjusted EPS of $0.66 exceeded the roughly $0.57 consensus estimate, while revenue per available seat mile increased 21.6% and the operating margin expanded to 4.5%. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Strong fares, passenger demand and ancillary revenue helped Southwest expand margins despite substantially higher operating costs. Management also indicated that fourth-quarter unit revenue could rise 19% to 21% year over year. Southwest Airlines posts record revenue as fuel costs surge
• Neutral Sentiment: Wells Fargo initiated a Hold rating, while Susquehanna reduced its price target to $43 from $45, signaling limited near-term upside relative to the recent share price. Susquehanna Adjusts Price Target on Southwest Airlines
• Negative Sentiment: Southwest lowered its full-year 2026 adjusted EPS guidance to $2.60–$2.85, versus a $2.85 analyst consensus. Fourth-quarter adjusted EPS guidance of $0.55–$0.80 is also below the $0.88 consensus estimate. Southwest Airlines cuts 2026 profit forecast on higher fuel
• Negative Sentiment: Fuel expense increased by $821 million year over year, and management said it is planning for elevated jet-fuel prices to persist into 2027. The combination of higher fuel costs and cautious analyst sentiment is outweighing the strong quarterly results for investors today. US airlines favor higher fares over fuller planes as fuel costs squeeze profits

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.