Southwest Airlines (NYSE:LUV) Given New $44.00 Price Target at Wells Fargo & Company

Southwest Airlines (NYSE:LUV) had its price objective decreased by equities researchers at Wells Fargo & Company from $50.00 to $44.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has an “equal weight” rating on the airline’s stock. Wells Fargo & Company‘s target price suggests a potential upside of 10.98% from the company’s current price.

LUV has been the topic of a number of other reports. BNP Paribas Exane raised their price objective on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a report on Monday, December 8th. Morgan Stanley boosted their target price on Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. The Goldman Sachs Group increased their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday, January 30th. Jefferies Financial Group reduced their price target on shares of Southwest Airlines from $48.00 to $41.00 and set a “hold” rating on the stock in a research report on Thursday. Finally, Bank of America boosted their price objective on shares of Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a research note on Friday, January 30th. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and a consensus target price of $47.03.

Southwest Airlines Trading Up 2.3%

Shares of LUV stock traded up $0.90 on Monday, reaching $39.65. 1,869,392 shares of the stock were exchanged, compared to its average volume of 10,420,346. The stock has a market cap of $19.48 billion, a P/E ratio of 47.10, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10. 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 firm has a 50 day moving average of $46.67 and a two-hundred day moving average of $38.74. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV) last issued its earnings results 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 business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same period last year, the company posted $0.56 EPS. The business’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, research analysts anticipate that Southwest Airlines will post 1.55 EPS for the current year.

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently modified their holdings of LUV. Arrowstreet Capital Limited Partnership lifted its position in Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after acquiring an additional 9,716,160 shares in the last quarter. Norges Bank purchased a new position in Southwest Airlines in the 4th quarter worth approximately $172,038,000. Ameriprise Financial Inc. grew its position in Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after acquiring an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC grew its position in Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after acquiring an additional 3,606,255 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA purchased a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $143,450,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

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.