Southwest Airlines (NYSE:LUV) Upgraded to “Overweight” at JPMorgan Chase & Co.

JPMorgan Chase & Co. upgraded shares of Southwest Airlines (NYSE:LUV) from an underweight rating to an overweight rating in a research report report published on Friday morning, Marketbeat Ratings reports. They currently have $60.00 price target on the airline’s stock, up from their prior price target of $36.00.

A number of other analysts have also recently commented on LUV. Wall Street Zen upgraded shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. Bank of America boosted their target price on Southwest Airlines from $28.00 to $37.00 and gave the company an “underperform” rating in a research note on Tuesday. Raymond James Financial increased their price target on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Friday, December 19th. Susquehanna lifted their price objective on Southwest Airlines from $30.00 to $35.00 and gave the company a “neutral” rating in a report on Friday, October 3rd. Finally, BMO Capital Markets started coverage on Southwest Airlines in a research report on Tuesday, December 9th. They issued a “market perform” rating and a $43.00 price objective for the company. Six research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $42.11.

Southwest Airlines Stock Performance

Shares of NYSE:LUV opened at $44.46 on Friday. The firm’s 50 day simple moving average is $37.32 and its 200 day simple moving average is $34.24. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $45.02. The company has a market capitalization of $22.99 billion, a price-to-earnings ratio of 68.39, a P/E/G ratio of 0.26 and a beta of 1.16. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. The firm 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%. As a group, sell-side analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

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

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. First Heartland Consultants Inc. acquired a new position in shares of Southwest Airlines during the 4th quarter worth about $207,000. SG Americas Securities LLC raised its holdings in Southwest Airlines by 2,468.4% during the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after acquiring an additional 3,606,255 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in Southwest Airlines by 2.9% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 36,047 shares of the airline’s stock valued at $1,531,000 after purchasing an additional 1,026 shares during the last quarter. Wedmont Private Capital bought a new position in Southwest Airlines in the fourth quarter valued at approximately $255,000. Finally, Nordea Investment Management AB acquired a new position in shares of Southwest Airlines during the 4th quarter worth approximately $31,968,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.