Southwest Airlines Co. (NYSE:LUV) Receives Average Rating of “Hold” from Brokerages

Southwest Airlines Co. (NYSE:LUV) has been given an average rating of “Hold” by the twenty-two analysts that are covering the company, Marketbeat reports. Four research analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation, seven have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $45.7632.

LUV has been the subject of several recent analyst reports. 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 note on Monday, December 8th. Zacks Research raised Southwest Airlines from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 30th. BMO Capital Markets upgraded Southwest Airlines from a “market perform” rating to an “outperform” rating and lifted their target price for the stock from $43.00 to $57.50 in a report on Friday, January 30th. The Goldman Sachs Group increased their price target on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a report on Friday, January 30th. Finally, Wells Fargo & Company lifted their price objective on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, January 30th.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the stock. Independent Advisor Alliance bought a new position in Southwest Airlines during the 4th quarter worth about $228,000. World Investment Advisors grew its holdings in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after buying an additional 210 shares in the last quarter. First Eagle Investment Management LLC raised its position in Southwest Airlines by 150.0% in the 4th quarter. First Eagle Investment Management LLC now owns 10,000 shares of the airline’s stock valued at $413,000 after buying an additional 6,000 shares during the last quarter. Ballast Rock Private Wealth LLC bought a new stake in Southwest Airlines in the 4th quarter valued at approximately $224,000. Finally, Oxbow Advisors LLC acquired a new position in Southwest Airlines during the 4th quarter worth approximately $525,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Stock Up 2.7%

Shares of Southwest Airlines stock opened at $52.55 on Thursday. The business has a fifty day simple moving average of $41.72 and a 200 day simple moving average of $35.50. The stock has a market cap of $27.18 billion, a PE ratio of 62.56, a price-to-earnings-growth ratio of 0.37 and a beta of 1.15. 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 12 month low of $23.82 and a 12 month high of $52.77.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations 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 quarter last year, the business 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. Research analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

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

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.