Southwest Airlines Co. (NYSE:LUV) Receives $46.25 Average Target Price from Brokerages

Southwest Airlines Co. (NYSE:LUV) has been given an average rating of “Hold” by the twenty ratings firms that are presently covering the stock, Marketbeat.com reports. Four research analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation and eight have issued a buy recommendation on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $46.25.

Several analysts have recently issued reports on LUV shares. BNP Paribas Exane upped their target price on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. Raymond James Financial boosted their price objective on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research note on Friday, December 19th. Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. The Goldman Sachs Group raised their price objective on Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research note on Friday, January 30th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th.

Southwest Airlines Trading Down 0.0%

LUV stock opened at $37.36 on Friday. The firm has a fifty day moving average price of $46.03 and a 200 day moving average price of $39.29. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $55.11. The firm has a market cap of $18.35 billion, a PE ratio of 44.47, a price-to-earnings-growth ratio of 0.27 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter in the prior year, the firm earned $0.56 earnings per share. Southwest Airlines’s revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Sell-side analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be given a $0.18 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 1.9%. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. SHP Wealth Management bought a new stake in shares of Southwest Airlines in the 4th quarter worth about $25,000. GHP Investment Advisors Inc. purchased a new position in shares of Southwest Airlines during the 4th quarter worth about $26,000. Entrust Financial LLC purchased a new position in shares of Southwest Airlines during the 4th quarter worth about $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines during the 4th quarter valued at about $26,000. Finally, Optima Capital LLC bought a new position in Southwest Airlines during the 4th quarter valued at about $27,000. Institutional investors 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.