Southwest Airlines (NYSE:LUV) Price Target Lowered to $56.00 at UBS Group

Southwest Airlines (NYSE:LUV) had its price objective decreased by UBS Group from $59.00 to $56.00 in a research report issued on Monday,Benzinga reports. The firm presently has a “buy” rating on the airline’s stock. UBS Group’s target price suggests a potential upside of 37.62% from the company’s current price.

A number of other brokerages also recently commented on LUV. JPMorgan Chase & Co. upgraded shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and boosted their target price for the stock from $36.00 to $60.00 in a report on Friday, January 9th. Jefferies Financial Group cut their price objective on shares of Southwest Airlines from $48.00 to $41.00 and set a “hold” rating on the stock in a research report on Thursday, March 12th. Evercore increased their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research report on Thursday, January 29th. Raymond James Financial lifted their price target 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, Citigroup lowered their target price on shares of Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research note on Friday. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and an average target price of $46.25.

Southwest Airlines Stock Up 3.3%

Shares of LUV stock traded up $1.28 during mid-day trading on Monday, hitting $40.69. The stock had a trading volume of 2,782,602 shares, compared to its average volume of 10,431,469. The firm has a market capitalization of $19.99 billion, a P/E ratio of 48.47, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10. 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 has a 12-month low of $23.82 and a 12-month high of $55.11. The firm’s 50-day moving average is $46.41 and its two-hundred day moving average is $39.00.

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 the consensus estimate of $0.56 by $0.02. The company had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the prior year, the business earned $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, analysts predict that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds have recently bought and sold shares of LUV. Rockefeller Capital Management L.P. grew its position in Southwest Airlines by 19.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 79,357 shares of the airline’s stock valued at $3,280,000 after acquiring an additional 12,779 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Southwest Airlines by 27.9% during the fourth quarter. Corient Private Wealth LLC now owns 85,759 shares of the airline’s stock worth $3,545,000 after purchasing an additional 18,685 shares in the last quarter. Hsbc Holdings PLC boosted its stake in shares of Southwest Airlines by 23.8% in the fourth quarter. Hsbc Holdings PLC now owns 939,398 shares of the airline’s stock valued at $38,916,000 after purchasing an additional 180,619 shares during the period. SHP Wealth Management purchased a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $25,000. Finally, Strategic Investment Solutions Inc. IL increased its stake in Southwest Airlines by 37.9% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 7,275 shares of the airline’s stock worth $301,000 after buying an additional 2,000 shares during the period. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.