Southwest Airlines Co. (NYSE:LUV) Given Average Rating of “Hold” by Analysts

Southwest Airlines Co. (NYSE:LUV) has been assigned an average rating of “Hold” from the twenty-two brokerages that are presently covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $49.5550.

A number of equities analysts have weighed in on LUV shares. TD Cowen boosted their target price on shares of Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. Raymond James Financial increased their price target on shares of Southwest Airlines from $55.00 to $60.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Argus lowered their price target on shares of Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 24th. UBS Group boosted their price objective on shares of Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Finally, Morgan Stanley upped their price objective on Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a report on Monday, July 6th.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its position in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after purchasing an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after buying an additional 3,141 shares during the period. Empowered Funds LLC grew its position in shares of Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after buying an additional 527 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after buying an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines Stock Performance

Shares of NYSE:LUV opened at $46.99 on Thursday. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. The firm has a market cap of $22.99 billion, a PE ratio of 28.83, a price-to-earnings-growth ratio of 0.39 and a beta of 1.14. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The business has a fifty day moving average of $46.73 and a 200-day moving average of $44.40.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the previous year, the business 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 3.49 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.18 per share. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is presently 44.17%.

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.