Southwest Airlines (NYSE:LUV) Given New $55.00 Price Target at Susquehanna

Southwest Airlines (NYSE:LUV) had its target price boosted by Susquehanna from $45.00 to $55.00 in a research report sent to investors on Tuesday,Benzinga reports. The brokerage currently has a neutral rating on the airline’s stock.

LUV has been the topic of several other reports. UBS Group increased their price target on Southwest Airlines from $45.00 to $51.00 and gave the stock a “neutral” rating in a research report on Monday. The Goldman Sachs Group upped their target price on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research note on Friday, January 30th. Seaport Research Partners lifted their price target on Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Finally, Bank of America raised their price objective on shares of Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a research note on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $45.76.

Southwest Airlines Stock Up 3.1%

Southwest Airlines stock opened at $51.18 on Tuesday. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $51.21. The company has a market cap of $26.47 billion, a PE ratio of 60.93, a PEG ratio of 0.36 and a beta of 1.15. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The business’s 50-day simple moving average is $41.37 and its two-hundred day simple moving average is $35.38.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the prior year, the firm earned $0.56 earnings per share. Southwest Airlines’s revenue for the quarter 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. Equities analysts anticipate that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Friday, December 26th. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently bought and sold shares of the company. Elevation Point Wealth Partners LLC acquired a new stake in Southwest Airlines during the second quarter worth about $25,000. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Corsicana & Co. purchased a new stake in shares of Southwest Airlines during the 3rd quarter valued at approximately $27,000. Quent Capital LLC acquired a new position in Southwest Airlines in the third quarter valued at approximately $27,000. Finally, Optima Capital LLC purchased a new position in Southwest Airlines in the fourth quarter worth approximately $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Q4 EPS beat and full-year guidance — Southwest reported Q4 EPS of $0.58, beating estimates, and set FY2026 guidance that implies stronger profitability, supporting investor optimism. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Positive Sentiment: Seating and fee overhaul aimed at higher unit revenue — Management is overhauling seating and ancillary fees to lift per-passenger revenue and profit targets for 2026, a structural move investors view as earnings-accretive. Southwest Overhauls Seating And Fees As Profit Targets Soar For 2026
• Positive Sentiment: Analyst target uplifts and upgrades — Susquehanna raised its price target to $55 (neutral rating) and BMO upgraded the stock, signaling buy-side support for the recovery narrative. These actions help underpin the stock’s rally. Benzinga coverage of analyst moves Southwest Airlines (NYSE:LUV) Upgraded at BMO Capital Markets
• Positive Sentiment: Unusual call buying and momentum rankings — Heavy call-option activity and multiple Zacks momentum/strong-buy listings have attracted speculative and momentum buyers. Best Momentum Stocks to Buy for February 2nd
• Neutral Sentiment: Promotional marketing (free-flights) — Southwest is running a limited-time free-flights promotion that should lift bookings/PR but could pressure near-term unit revenues; impact depends on scale and duration. Southwest Airlines brings back free flights—limited-time
• Neutral Sentiment: Mixed analyst stance — Several firms raised price targets (UBS, Jefferies, others) but maintained neutral/hold ratings, leaving room for upside but signaling limited near-term consensus conviction. Benzinga coverage of analyst moves
• Negative Sentiment: Cautionary commentary and slight revenue miss — Commentators (e.g., Jim Cramer) flagged that some new policies are risky, and Q4 revenue of $7.44B missed the ~$7.51B consensus — a reminder upside is not guaranteed and execution risk remains. Jim Cramer Notes “Southwest Took a Big Risk With Some New Policies” Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance

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.