Southwest Airlines (NYSE:LUV) Given New $42.00 Price Target at Jefferies Financial Group

Southwest Airlines (NYSE:LUV) had its target price hoisted by Jefferies Financial Group from $41.00 to $42.00 in a research note issued to investors on Tuesday,MarketScreener reports. Jefferies Financial Group currently has a hold rating on the airline’s stock.

A number of other equities analysts have also recently weighed in on LUV. The Goldman Sachs Group cut their price target on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. BNP Paribas Exane boosted their target price on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research note on Monday, December 8th. Wells Fargo & Company reduced their target price on shares of Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a report on Monday, March 16th. Finally, Raymond James Financial raised their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research note on Friday, December 19th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $44.94.

Southwest Airlines Price Performance

Shares of NYSE LUV traded up $0.50 on Tuesday, hitting $38.07. The company’s stock had a trading volume of 4,909,969 shares, compared to its average volume of 10,098,287. The stock has a 50 day moving average of $45.80 and a 200-day moving average of $39.36. The company has a market capitalization of $18.70 billion, a price-to-earnings ratio of 45.32, a price-to-earnings-growth ratio of 0.27 and a beta of 1.10. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $55.11. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data 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. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same period last year, the company posted $0.56 EPS. The company’s revenue was up 7.4% on a year-over-year basis. 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 predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

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

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC acquired a new position in Southwest Airlines during the second quarter worth approximately $25,000. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the 4th quarter valued at $25,000. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $26,000. 80.82% of the stock is owned by institutional investors and hedge funds.

More Southwest Airlines News

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

• Positive Sentiment: Jefferies raised its price target slightly to $42 (from $41) and kept a Hold rating, giving modest upside and signaling limited near?term downside. Article Title
• Neutral Sentiment: BMO Capital Markets cut its PT to $45 from $57.50 but maintained an Outperform rating — a sign that analysts expect recovery but have tempered upside expectations. Article Title
• Neutral Sentiment: Raymond James also trimmed its PT to $45 (from $55) while keeping an Outperform rating, mirroring BMO’s view of lower upside but continued confidence in longer?term recovery. Article Title
• Neutral Sentiment: UBS trimmed a prior PT (reported March 23) to $56 from $59 but reiterated a Buy — a modest downgrade in expectations rather than a stance shift. Article Title
• Negative Sentiment: Goldman Sachs lowered its PT to $30 (from $32) and kept a Sell rating, implying roughly ~21% downside vs. current levels and adding bearish pressure. Article Title
• Negative Sentiment: Bank of America cut its PT to $40 and kept an Underperform rating, reducing expected upside and adding to downward pressure from institutional research. Article Title
• Negative Sentiment: Industry note — a Reuters/Yahoo piece flags rising costs and potential fare increases as the Iran war pressures carriers (cites a ~$400M overhead impact and margin risk ahead of summer), which could weigh on airline margins, including Southwest’s. Article Title

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.