Bank of America Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target lowered by investment analysts at Bank of America from $42.00 to $40.00 in a research report issued on Wednesday,MarketScreener reports. The firm presently has an “underperform” rating on the airline’s stock. Bank of America‘s price target would suggest a potential upside of 5.09% from the stock’s previous close.

A number of other equities analysts also recently weighed in on the company. Jefferies Financial Group reduced their price target on Southwest Airlines from $48.00 to $41.00 and set a “hold” rating for the company in a research report on Thursday, March 12th. The Goldman Sachs Group lifted their price target on shares of Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research note on Friday, January 30th. Deutsche Bank Aktiengesellschaft upped their target price on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a research report on Friday. Finally, Citigroup decreased their target price 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. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $44.94.

Southwest Airlines Trading Up 1.3%

LUV stock traded up $0.49 during midday trading on Wednesday, hitting $38.06. 4,730,546 shares of the company’s stock were exchanged, compared to its average volume of 10,096,475. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The company has a market cap of $18.69 billion, a PE ratio of 45.36, a price-to-earnings-growth ratio of 0.27 and a beta of 1.10. The stock’s fifty day moving average price is $45.80 and its 200-day moving average price is $39.36.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating 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 business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same period in the previous year, the firm earned $0.56 EPS. Southwest Airlines’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. Research analysts predict that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Cibc World Market Inc. raised its position in Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock valued at $61,140,000 after purchasing an additional 214,092 shares in the last quarter. Hussman Strategic Advisors Inc. bought a new stake in shares of Southwest Airlines during the 3rd quarter worth $2,010,000. Gradient Investments LLC boosted its stake in Southwest Airlines by 5.4% in the third quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock valued at $18,447,000 after buying an additional 29,665 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. Finally, Nordea Investment Management AB bought a new stake in shares of Southwest Airlines during the 4th quarter valued at approximately $31,968,000. 80.82% of the stock is owned by institutional investors.

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.