Southwest Airlines (NYSE:LUV) Price Target Raised to $53.00

Southwest Airlines (NYSE:LUV) had its price target increased by UBS Group from $49.00 to $53.00 in a report published on Thursday morning, MarketBeat reports. UBS Group currently has a buy rating on the airline’s stock.

A number of other research firms also recently weighed in on LUV. BMO Capital Markets raised their price target on Southwest Airlines from $58.50 to $60.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Citigroup dropped their price objective on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a research note on Friday, July 24th. Zacks Research raised shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. Bank of America raised their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a research note on Wednesday, July 1st. Finally, Wall Street Zen lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. Nine research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $48.51.

Southwest Airlines Stock Performance

Shares of LUV opened at $42.71 on Thursday. The stock has a market capitalization of $20.89 billion, a price-to-earnings ratio of 26.20, a PEG ratio of 0.40 and a beta of 1.13. Southwest Airlines has a 12 month low of $29.26 and a 12 month high of $55.11. The firm has a fifty day simple moving average of $42.60 and a 200 day simple moving average of $42.66. 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 (NYSE:LUV) last issued its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts’ expectations 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 for the quarter was up 16.4% on a year-over-year basis. During the same period in the previous year, the firm posted $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. Research analysts forecast that Southwest Airlines will post 3.27 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 3rd were issued a dividend of $0.18 per share. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. Southwest Airlines’s payout ratio is presently 44.17%.

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently added to or reduced their stakes in LUV. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the fourth quarter valued at $25,000. Archer Investment Corp acquired a new stake in shares of Southwest Airlines during the 2nd quarter worth about $32,000. Fiduciary Financial Advisors bought a new stake in shares of Southwest Airlines during the 2nd quarter worth about $32,000. Scarborough Advisors LLC bought a new stake in shares of Southwest Airlines during the 1st quarter worth about $28,000. Finally, Grove Bank & Trust grew its stake in Southwest Airlines by 109.4% in the 2nd quarter. Grove Bank & Trust now owns 871 shares of the airline’s stock valued at $45,000 after buying an additional 455 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. Operating under the Southwest Airlines brand, the company provides scheduled air transportation for domestic and international travelers and also offers air cargo services.

Southwest was founded in 1967 and began commercial service in 1971, initially connecting Dallas, Houston and San Antonio. The airline expanded its network across the United States and now serves numerous destinations in the United States, Mexico, the Caribbean, Central America and other nearby international markets.