Southwest Airlines (NYSE:LUV) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Southwest Airlines (NYSE:LUV) from a buy rating to a hold rating in a report released on Saturday morning,Wall Street Zen reports.

LUV has been the subject of several other research reports. BMO Capital Markets increased their target price on shares of Southwest Airlines from $58.50 to $60.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Raymond James Financial cut their price target on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating on the stock in a report on Monday, August 24th. Bank of America upped their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 1st. Zacks Research upgraded shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $49.01.

Southwest Airlines Stock Up 2.3%

LUV stock opened at $39.64 on Friday. The firm has a market capitalization of $19.39 billion, a PE ratio of 24.32, a P/E/G ratio of 0.37 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 has a twelve month low of $29.26 and a twelve month high of $55.11. The stock’s 50 day moving average is $45.39 and its 200-day moving average is $43.65.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate 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%.Southwest Airlines’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.43 earnings per share. 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 expect that Southwest Airlines will post 3.28 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s payout ratio is 44.17%.

Hedge Funds Weigh In On Southwest Airlines

Several institutional investors have recently added to or reduced their stakes in LUV. SHP Wealth Management bought a new stake in Southwest Airlines in the fourth quarter worth about $25,000. Entrust Financial LLC bought a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC bought a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Scarborough Advisors LLC bought a new stake in shares of Southwest Airlines in the 1st quarter worth approximately $28,000. Finally, DV Equities LLC purchased a new position in Southwest Airlines in the fourth quarter valued at approximately $30,000. Institutional investors own 80.82% of the company’s stock.

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.