Southwest Airlines (NYSE:LUV) Price Target Raised to $44.00

Southwest Airlines (NYSE:LUV) had its price target increased by Citigroup from $38.00 to $44.00 in a report released on Wednesday,Benzinga reports. They currently have a neutral rating on the airline’s stock.

Several other research analysts have also weighed in on LUV. BMO Capital Markets started coverage on shares of Southwest Airlines in a report on Tuesday, December 9th. They set a “market perform” rating and a $43.00 price objective for the company. UBS Group lifted their price target on Southwest Airlines from $43.00 to $45.00 and gave the stock a “neutral” rating in a research note on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Raymond James Financial increased their target price on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Friday, December 19th. Finally, JPMorgan Chase & Co. raised their price target on shares of Southwest Airlines from $35.00 to $36.00 and gave the stock an “underweight” rating in a research report on Friday, October 24th. Six research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $42.11.

Southwest Airlines Price Performance

Shares of LUV stock opened at $44.46 on Wednesday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52. The firm has a fifty day simple moving average of $37.32 and a 200-day simple moving average of $34.24. The company has a market capitalization of $22.99 billion, a PE ratio of 68.39, a price-to-earnings-growth ratio of 0.26 and a beta of 1.16. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $45.02.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Tuesday, February 6th. The airline reported ($0.38) earnings per share for the quarter. The business had revenue of $6.17 billion for the quarter. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. Equities research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 16th. Investors of record on Friday, December 26th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, December 26th. Southwest Airlines’s dividend payout ratio is 110.77%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Elevation Point Wealth Partners LLC acquired a new position in shares of Southwest Airlines during the second quarter valued at $25,000. Corsicana & Co. acquired a new position in shares of Southwest Airlines during the third quarter valued at approximately $27,000. Quent Capital LLC bought a new stake in Southwest Airlines during the third quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Southwest Airlines in the second quarter worth approximately $31,000. Finally, Hantz Financial Services Inc. boosted its stake in Southwest Airlines by 81.4% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,056 shares of the airline’s stock valued at $34,000 after purchasing an additional 474 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: Rare double-upgrade from JPMorgan — JPMorgan upgraded LUV from underweight to overweight and lifted its price target to $60, a large upward move that traders say is the main catalyst for the rally as it signals materially higher earnings expectations. Barron’s: Rare Double Upgrade
• Positive Sentiment: Multiple price-target raises — Citi and UBS both bumped targets (Citi to $44, UBS to $45), reinforcing the analyst trend higher and supporting upside in the stock as models are re-priced for better forward earnings. Citi price target raise
• Positive Sentiment: Broader analyst optimism — Citigroup and other firms published bullish commentary forecasting notable price appreciation based on improving fundamentals and potential margin recovery. Citigroup forecast
• Neutral Sentiment: Susquehanna raised its target to $45 but kept a “neutral” rating — the higher target supports the rally but the retained rating tempers how decisive the firm views near-term upside. Benzinga: Susquehanna note
• Neutral Sentiment: Strategic/cabin changes under review — articles on Southwest’s cabin revamp and assigned seating argue these initiatives could reshape unit revenue and customer experience, but benefits depend on execution and timing. Yahoo: Cabin revamp
• Neutral Sentiment: New marketing/partnerships — a legacy partnership with the Chicago Cubs is positive PR and revenue/brand-supportive, but unlikely to move near-term fundamentals materially. MLB press release
• Neutral Sentiment: Mixed analyst landscape — several firms remain cautious/hold-rated (e.g., Wells Fargo), so while sentiment is tilting positive, coverage is not uniformly bullish. Wells Fargo hold

About Southwest Airlines

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.