Southwest Airlines Co. (NYSE:LUV) Receives Consensus Recommendation of “Hold” from Analysts

Southwest Airlines Co. (NYSE:LUV) has earned a consensus rating of “Hold” from the twenty analysts that are covering the firm, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and eight have given a buy recommendation to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $43.7222.

Several research analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft increased their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Evercore upped their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a report on Thursday, January 29th. Bank of America lowered their price objective on shares of Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a research report on Wednesday. Wells Fargo & Company dropped their target price on shares of Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a report on Monday, March 16th. Finally, UBS Group cut their target price on Southwest Airlines from $59.00 to $56.00 and set a “buy” rating on the stock in a research report on Monday, March 23rd.

Southwest Airlines Price Performance

LUV stock opened at $37.66 on Friday. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $55.11. 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 stock has a market cap of $18.49 billion, a price-to-earnings ratio of 44.83, a price-to-earnings-growth ratio of 0.29 and a beta of 1.19. The business has a fifty day moving average of $45.61 and a two-hundred day moving average of $39.34.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company’s revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th were paid a $0.18 dividend. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. Southwest Airlines’s payout ratio is presently 85.71%.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cibc World Market Inc. increased its stake in Southwest Airlines by 12.6% during the 3rd quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock worth $61,140,000 after buying an additional 214,092 shares during the period. Hussman Strategic Advisors Inc. purchased a new position in Southwest Airlines in the 3rd quarter valued at approximately $2,010,000. Gradient Investments LLC grew its stake in shares of Southwest Airlines by 5.4% in the third quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock worth $18,447,000 after acquiring an additional 29,665 shares in the last quarter. SG Americas Securities LLC grew its stake in shares of 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 worth $155,085,000 after acquiring an additional 3,606,255 shares in the last quarter. Finally, Nordea Investment Management AB purchased a new stake in shares of Southwest Airlines during the fourth quarter worth $31,968,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines News Summary

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

• Positive Sentiment: Jefferies raised its price target to $42 (maintained Hold), a mild constructive signal that some analysts still see upside from current levels. Jefferies price target raise
• Positive Sentiment: Zacks published a bullish/value‑oriented piece arguing Southwest is a strong value pick based on style scores, which can support longer‑term investor interest despite near‑term pressure. Zacks: strong value stock
• Neutral Sentiment: Bank of America notes high fuel costs are weighing on carriers but says strong travel demand and rising fares could offset some of the hit to margins — an important moderating viewpoint for investors watching revenue resiliency. BofA on fuel vs. demand
• Neutral Sentiment: Barron’s highlights industry changes such as higher baggage fees at other carriers — a potential revenue lever for airlines but also a consumer headwind that could affect demand dynamics. Barron’s on baggage fees
• Negative Sentiment: Multiple reports tie LUV weakness to a surge in jet‑fuel prices after geopolitical developments around Iran — investors fear a material rise in operating costs that would compress margins. Blockonomi: jet fuel surge & Iran
• Negative Sentiment: Wider energy coverage shows jet fuel up dramatically (reports cite 70%–100% moves in some measures), pressuring all carriers’ cost outlooks and prompting market selloffs in airline stocks. Yahoo: jet fuel surge
• Negative Sentiment: Several brokerages cut or trimmed Southwest targets (examples: BMO, Raymond James, Goldman, Bank of America, Susquehanna, TD Cowen), signaling reduced near‑term earnings/valuation expectations amid the fuel shock—this analyst repricing is weighing on the stock. Analyst price target moves

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.