Citigroup Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target decreased by Citigroup from $55.00 to $50.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a “neutral” rating on the airline’s stock. Citigroup’s target price would suggest a potential upside of 11.74% from the company’s previous close.

Several other research firms also recently weighed in on LUV. 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 report on Wednesday, July 1st. TD Cowen boosted their price target on shares of Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Morgan Stanley upped their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. JPMorgan Chase & Co. decreased their price objective on shares of Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Finally, UBS Group lifted their price target on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $49.33.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $44.75 on Friday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The firm has a market capitalization of $21.87 billion, a PE ratio of 27.45, a P/E/G ratio of 0.45 and a beta of 1.12. Southwest Airlines has a 1-year low of $28.98 and a 1-year high of $55.11. The business’s fifty day moving average price is $45.88 and its two-hundred day moving average price is $44.29.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 13.93%. The firm had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. During the same period in the previous year, the business 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. On average, research analysts expect that Southwest Airlines will post 3.23 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LUV. AQR Capital Management LLC lifted its position in shares of Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after purchasing an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after acquiring an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP boosted its position in Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after purchasing an additional 98,986 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Roundup

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

• Positive Sentiment: Southwest beat Q2 expectations with adjusted EPS of $0.94 versus $0.52 consensus, and revenue of $8.72 billion topped estimates, supported by record quarterly revenue, higher fares, and margin expansion. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Positive Sentiment: The company said its full-year EPS guide of $3.25 to $4.25 remains above the recent analyst consensus, suggesting improved earnings power despite cost pressure. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Neutral Sentiment: Southwest also highlighted transformational initiatives, broad demand strength, and strong Customer engagement, which support the long-term operating story. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Analysts and media coverage noted that airlines are dealing with volatile jet fuel prices, which are becoming a moving target for earnings forecasts across the sector. Fuel Swings Turn US Airline Earnings Forecasts Into Moving Targets
• Negative Sentiment: Investors are reacting to a softer Q3 outlook: Southwest guided third-quarter EPS to $0.50 to $0.75, below Wall Street’s expectation, while fuel costs rose by roughly $889 million. Southwest Airlines Profit Jumps 9% as Passengers Pick Up Fuel Tab, but Third-Quarter Forecast Falls Short
• Negative Sentiment: Southwest cut its full-year outlook, with fuel expense pressures and weaker near-term profit expectations overshadowing the earnings beat. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

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.