BMO Capital Markets Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price objective cut by equities research analysts at BMO Capital Markets from $60.00 to $50.00 in a research report issued to clients and investors on Monday, Marketbeat Ratings reports. The firm currently has an “outperform” rating on the airline’s stock. BMO Capital Markets’ target price suggests a potential upside of 18.78% from the stock’s previous close.

LUV has been the subject of a number of other research reports. TD Cowen cut their price target on shares of Southwest Airlines from $53.00 to $48.00 and set a “buy” rating for the company in a report on Monday, August 24th. Rothschild & Co Redburn raised shares of Southwest Airlines from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $35.00 to $40.00 in a report on Friday, September 18th. The Goldman Sachs Group upped their target price on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research report on Thursday, July 2nd. Jefferies Financial Group increased their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a report on Wednesday, July 1st. Finally, UBS Group boosted their price target on Southwest Airlines from $49.00 to $53.00 and gave the stock a “buy” rating in a research note on Thursday, September 24th. Nine research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and an average price target of $48.01.

Southwest Airlines Price Performance

Shares of NYSE:LUV opened at $42.10 on Monday. Southwest Airlines has a 52 week low of $29.26 and a 52 week high of $55.11. The company has a 50-day moving average price of $42.35 and a 200 day moving average price of $42.66. The company has a market cap of $20.59 billion, a P/E ratio of 25.83, a PEG ratio of 0.39 and a beta of 1.13. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The company’s revenue for the quarter was up 16.4% on a year-over-year basis. During the same period in the prior year, the business 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 predict that Southwest Airlines will post 3.27 earnings per share for the current year.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently modified their holdings of the company. SHP Wealth Management acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $25,000. Scarborough Advisors LLC acquired a new position in Southwest Airlines in the 1st quarter valued at $28,000. Fiduciary Financial Advisors acquired a new position in Southwest Airlines in the 2nd quarter valued at $32,000. Archer Investment Corp acquired a new stake in shares of Southwest Airlines during the second quarter worth $32,000. Finally, MCF Advisors LLC lifted its position in Southwest Airlines by 28.5% during the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after buying an additional 203 shares during the period. 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. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.