Southwest Airlines (NYSE:LUV) Given New $48.00 Price Target at Jefferies Financial Group

Southwest Airlines (NYSE:LUV) had its price objective hoisted by Jefferies Financial Group from $45.00 to $48.00 in a research report sent to investors on Monday morning,Benzinga reports. They currently have a hold rating on the airline’s stock.

Other research analysts have also issued reports about the stock. Susquehanna lifted their price objective on shares of Southwest Airlines from $35.00 to $45.00 and gave the company a “neutral” rating in a research note on Friday, January 9th. Morgan Stanley boosted their price target on Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday. Sanford C. Bernstein upped their price objective on Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. Wall Street Zen upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. Finally, Citigroup boosted their target price on Southwest Airlines from $38.00 to $44.00 and gave the company a “neutral” rating in a report on Wednesday, January 7th. Seven equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $45.24.

Southwest Airlines Trading Up 4.4%

LUV opened at $49.63 on Monday. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $49.85. The business’s 50 day moving average is $41.04 and its two-hundred day moving average is $35.27. The firm has a market cap of $25.66 billion, a price-to-earnings ratio of 59.08, a price-to-earnings-growth ratio of 0.37 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company’s revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.56 earnings per share. 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 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, December 26th were paid a $0.18 dividend. The ex-dividend date was Friday, December 26th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is 85.71%.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Transcend Capital Advisors LLC lifted its stake in Southwest Airlines by 4.2% in the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after buying an additional 272 shares in the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of Southwest Airlines by 1.7% in the fourth quarter. Asset Management One Co. Ltd. now owns 19,268 shares of the airline’s stock worth $792,000 after acquiring an additional 315 shares during the last quarter. Benjamin Edwards Inc. lifted its position in shares of Southwest Airlines by 1.4% in the second quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock valued at $806,000 after acquiring an additional 333 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Southwest Airlines by 2.4% during the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline’s stock worth $456,000 after purchasing an additional 341 shares during the last quarter. Finally, Valeo Financial Advisors LLC raised its holdings in Southwest Airlines by 3.3% in the 3rd quarter. Valeo Financial Advisors LLC now owns 10,791 shares of the airline’s stock valued at $344,000 after acquiring an additional 343 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Roundup

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

• Positive Sentiment: Zacks and other outlets added LUV to top momentum/strong-buy lists, highlighting improved style scores and momentum that could attract ETF/quant and retail flows. Zacks Momentum Article
• Positive Sentiment: UBS raised its price target to $51 (keeps a neutral rating) — a technical upward re-rate that supports near-term upside expectations. UBS PT Raise
• Positive Sentiment: BMO Capital Markets upgraded LUV, a credible institutional signal that helped lift sentiment after the firm highlighted operational/earnings recovery prospects. BMO Upgrade
• Positive Sentiment: Unusual options activity: traders bought ~52,057 call contracts (≈94% above average), indicating aggressive bullish positioning or hedging ahead of catalysts.
• Positive Sentiment: Barchart and other coverage noted the stock’s recent sharp gain and called it the best-performing day since 1978, framing LUV as a turnaround candidate for 2026. Barchart Turnaround Piece
• Neutral Sentiment: Multiple price-target changes were reported across outlets (American Banking News noted several raises to varying levels), showing analyst attention but mixed absolute targets; impacts depend on which firm’s view investors follow. Price Target Reports
• Negative Sentiment: Jefferies lifted its target to $48 but kept a “hold” rating — that target sits below the current trading level, signaling some analyst caution and a potential cap on upside. Jefferies PT

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.