Seaport Research Partners Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target lifted by Seaport Research Partners from $57.00 to $58.00 in a research report released on Thursday morning,MarketScreener reports.

Several other research analysts also recently commented on the company. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $34.00 to $56.00 in a report on Tuesday, December 16th. Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Bank of America upped their price target on shares of Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a research report on Friday. Wells Fargo & Company started coverage on shares of Southwest Airlines in a research note on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 target price for the company. Finally, Citigroup boosted their price objective on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 7th. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $44.34.

Southwest Airlines Price Performance

Shares of LUV stock traded up $0.40 during mid-day trading on Thursday, reaching $48.90. The company’s stock had a trading volume of 2,086,656 shares, compared to its average volume of 9,587,128. The company has a market cap of $25.29 billion, a P/E ratio of 58.43, a PEG ratio of 0.37 and a beta of 1.16. The firm’s 50-day moving average is $40.42 and its two-hundred day moving average is $35.14. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $49.85. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.11% and a net margin of 1.57%.Southwest Airlines’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, research analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, December 26th were given a $0.18 dividend. The ex-dividend date was Friday, December 26th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is currently 110.77%.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently made changes to their positions in LUV. Ameriprise Financial Inc. raised its position in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Southwest Airlines by 13.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after buying an additional 1,459,235 shares during the last quarter. Artisan Partners Limited Partnership raised its position in Southwest Airlines by 0.9% during the second quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after acquiring an additional 98,290 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Southwest Airlines by 2,403.8% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock valued at $328,305,000 after acquiring an additional 9,716,160 shares during the period. Finally, Invesco Ltd. increased its position in Southwest Airlines by 9.2% during the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after buying an additional 577,326 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Management raised FY?2026 adjusted EPS guidance to at least $4.00 and described the company’s business transformation (assigned seating, bag/seat fees) as driving materially higher revenue and profits — the core catalyst for today’s rally. Press Release
• Positive Sentiment: Major analyst upgrades/price?target raises contributed to the upside: Morgan Stanley moved to an “overweight” and lifted its target to $55, signaling confidence that the company can regain pre?pandemic economics. Benzinga
• Positive Sentiment: BMO upgraded LUV from “market perform” to “outperform” and raised its target to $57.50, another bullish vote that likely supports buying interest. Benzinga TickerReport
• Positive Sentiment: Q4 results showed an EPS beat and improving operating metrics (EPS topped estimates; revenue growth and operating profit gains helped sentiment). Zacks: Q4 Results
• Neutral Sentiment: Other analysts raised targets modestly or kept in?line ratings (Evercore ISI to $45 in?line), reflecting mixed views on valuation despite the stronger outlook. AmericanBankingNews
• Neutral Sentiment: Street research roundups and transcripts are circulating (conference call/transcript coverage), helping investors re?price LUV based on management commentary. 24/7 Wall St. roundup
• Negative Sentiment: Not all analysts are unequivocally bullish — Bank of America raised its target to $42 but kept an “underperform” stance, implying meaningful downside relative to current levels and signaling valuation/execution concerns. Benzinga
• Negative Sentiment: Management’s Q1 guidance (approx. $0.45) came in below consensus, indicating potential short?term pressure even as full?year guidance is strong — keep an eye on near?term revenue/unit?revenue trends. Press Release
• Negative Sentiment: Unusual options activity (spike in put purchases) suggests some investors are hedging or expressing near?term caution, which can amplify volatility.

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.