JPMorgan Chase & Co. Cuts Southwest Airlines (NYSE:LUV) Price Target to $59.00

Southwest Airlines (NYSE:LUV) had its price target trimmed by JPMorgan Chase & Co. from $60.00 to $59.00 in a research report report published on Friday,Benzinga reports. The firm currently has an overweight rating on the airline’s stock.

Several other research firms have also recently commented on LUV. HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their target price for the company from $24.40 to $36.10 in a research note on Friday, April 24th. Argus decreased their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a report on Friday, April 24th. Raymond James Financial lifted their price objective on Southwest Airlines from $55.00 to $60.00 and gave the stock an “outperform” rating in a research report on Monday, July 6th. Susquehanna lifted their price objective on Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 7th. Finally, Wells Fargo & Company boosted their price objective on Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average target price of $49.55.

Southwest Airlines Price Performance

LUV opened at $45.19 on Friday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The stock has a market capitalization of $22.11 billion, a P/E ratio of 27.72, a price-to-earnings-growth ratio of 0.38 and a beta of 1.12. The company’s 50 day simple moving average is $46.01 and its 200-day simple moving average is $44.30. Southwest Airlines has a one year low of $28.98 and a one year high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. During the same quarter in the previous year, the company posted $0.43 EPS. Southwest Airlines’s revenue was up 16.4% on a year-over-year basis. 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. Sell-side analysts anticipate that Southwest Airlines will post 3.59 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were paid a $0.18 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.6%. Southwest Airlines’s dividend payout ratio is 44.17%.

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently made changes to their positions in LUV. SHP Wealth Management bought a new position in Southwest Airlines in the 4th quarter valued at about $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Entrust Financial LLC bought a new position in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Los Angeles Capital Management LLC bought a new position in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Finally, Optima Capital LLC bought a new position in shares of Southwest Airlines during the fourth quarter worth approximately $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Southwest Airlines

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

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.