Southwest Airlines (NYSE:LUV) Stock Gets Price Target Reduction from UBS Group

Southwest Airlines (NYSE:LUV) had its price target lowered by UBS Group from $53.00 to $52.00 in a research report sent to investors on Friday morning,Benzinga reports. The firm currently has a buy rating on the airline’s stock.

Several other research analysts have also weighed in on LUV. Citigroup decreased their price objective on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating for the company in a report on Friday, July 24th. JPMorgan Chase & Co. cut 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 note on Friday, July 24th. The Goldman Sachs Group upped their target price on shares of Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, July 2nd. Barclays reduced their price target on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. Finally, Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, September 5th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $47.41.

Southwest Airlines Stock Down 0.0%

LUV stock opened at $39.49 on Friday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The firm has a 50 day simple moving average of $41.02 and a 200-day simple moving average of $42.83. The company has a market capitalization of $19.32 billion, a P/E ratio of 24.23, a PEG ratio of 1.02 and a beta of 1.16. Southwest Airlines has a twelve month low of $29.26 and a twelve month high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm’s quarterly revenue was up 16.4% on a year-over-year basis. During the same period 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. On average, equities research analysts predict that Southwest Airlines will post 2.98 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

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

Institutional Trading of Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the business. SHP Wealth Management bought a new position in Southwest Airlines in the fourth quarter worth about $25,000. Scarborough Advisors LLC bought a new position in Southwest Airlines in the 1st quarter worth approximately $28,000. Fiduciary Financial Advisors bought a new position in Southwest Airlines in the 2nd quarter worth approximately $32,000. Archer Investment Corp bought a new position in Southwest Airlines in the 2nd quarter worth approximately $32,000. Finally, MidFirst Bank acquired a new stake in Southwest Airlines in the 4th quarter valued at approximately $39,000. Institutional investors own 80.82% of the company’s stock.

Key Southwest Airlines News

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

• Positive Sentiment: UBS maintains a Buy rating. UBS lowered its price target modestly to $52 from $53, but the new target still implies substantial potential upside from recent trading levels. The continued Buy rating signals confidence in Southwest’s longer-term recovery and earnings outlook. UBS Adjusts Southwest Airlines Price Target
• Positive Sentiment: Rapid Rewards is being repositioned to generate more high-value customer revenue. Southwest plans to replace its existing A-List structure with Silver, Gold and Platinum tiers, while adding expanded redemption options, premium benefits, lounges and Starlink Wi-Fi. The changes could improve customer loyalty, attract affluent travelers and increase ancillary revenue, although the financial benefit will take time to develop. Southwest Revamps Loyalty Program
• Neutral Sentiment: Third-quarter earnings are the next major catalyst. Analysts are examining operating metrics beyond revenue and earnings, including the quality of bookings, traffic and revenue performance. Southwest’s previous quarter beat expectations, but investors are now looking for evidence that its full-year 2026 guidance can be sustained and that earnings estimates are not revised lower. Southwest Q3 Earnings Analyst Insights
• Negative Sentiment: Cost pressures and the reduced UBS target are weighing on sentiment. Southwest’s upcoming results face pressure from higher fuel and labor costs. Although strong bookings and revenue growth may provide support, investors remain concerned that rising expenses could limit margin improvement and trigger earnings-estimate revisions. UBS’s target-price reduction, despite retaining a Buy rating, reinforces the near-term caution. Southwest Airlines Q3 Earnings Preview

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.