Southwest Airlines (NYSE:LUV) Raised to Hold at Zacks Research

Southwest Airlines (NYSE:LUV) was upgraded by analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings cut Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. The Goldman Sachs Group dropped their target price on shares of Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. Evercore boosted their price target on shares of Southwest Airlines from $44.00 to $52.00 in a research note on Thursday. Raymond James Financial increased their price objective on Southwest Airlines from $45.00 to $55.00 and gave the company an “outperform” rating in a research note on Friday, April 24th. Finally, TD Cowen lifted their price target on shares of Southwest Airlines from $46.00 to $47.00 and gave the stock a “buy” rating in a research note on Monday, April 27th. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $46.36.

Southwest Airlines Stock Down 0.2%

Shares of LUV stock opened at $52.00 on Thursday. The firm has a market capitalization of $25.42 billion, a PE ratio of 33.55, a P/E/G ratio of 0.54 and a beta of 1.15. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The stock’s 50-day simple moving average is $42.37 and its 200-day simple moving average is $43.19. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same period last year, the company earned ($0.13) earnings per share. Southwest Airlines’s revenue for the quarter was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities analysts expect that Southwest Airlines will post 2.93 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of LUV. MCF Advisors LLC raised its holdings in Southwest Airlines by 28.5% in the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after buying an additional 203 shares during the period. World Investment Advisors raised its position in shares of Southwest Airlines by 1.0% during the 4th quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock valued at $843,000 after acquiring an additional 210 shares in the last quarter. Parkside Financial Bank & Trust lifted its holdings in Southwest Airlines by 7.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after acquiring an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its holdings in shares of Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after acquiring an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC raised its stake in shares of Southwest Airlines by 4.2% during the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after purchasing an additional 272 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.