Southwest Airlines (NYSE:LUV) Upgraded by UBS Group to “Buy” Rating

UBS Group upgraded shares of Southwest Airlines (NYSE:LUV) from a neutral rating to a buy rating in a report issued on Tuesday, Marketbeat reports. UBS Group currently has $73.00 price target on the airline’s stock, up from their previous price target of $51.00.

A number of other research firms have also recently weighed in on LUV. Wall Street Zen upgraded shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. BNP Paribas Exane upped their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a report on Monday, December 8th. Jefferies Financial Group increased their price objective on shares of Southwest Airlines from $45.00 to $48.00 and gave the stock a “hold” rating in a research report on Monday, February 2nd. TD Cowen boosted their target price on Southwest Airlines from $42.00 to $50.00 and gave the company a “hold” rating in a research report on Friday, January 30th. Finally, Citigroup upped their target price on Southwest Airlines from $44.00 to $54.00 in a research note on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $48.14.

Southwest Airlines Trading Up 6.0%

Shares of LUV stock opened at $54.18 on Tuesday. The company has a market cap of $26.62 billion, a PE ratio of 64.50, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The stock’s 50 day simple moving average is $44.66 and its two-hundred day simple moving average is $36.73. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, topping 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 during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the previous year, the business earned $0.56 EPS. The company’s quarterly revenue 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. Research analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Elevation Point Wealth Partners LLC bought a new position in shares of Southwest Airlines during the 2nd quarter worth $25,000. GHP Investment Advisors Inc. purchased a new stake in Southwest Airlines in the fourth quarter worth about $26,000. Entrust Financial LLC bought a new position in Southwest Airlines during the 4th quarter worth about $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines during the 4th quarter worth about $26,000. Finally, Corsicana & Co. purchased a new position in Southwest Airlines during the 3rd quarter valued at about $27,000. 80.82% of the stock is owned by institutional investors.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: UBS upgraded LUV from Neutral to Buy and raised its 12‑month price target to $73 (from $51), citing meaningful earnings upside from the carrier’s seating and fee initiatives — a direct driver of today’s rally. UBS upgrade report
• Positive Sentiment: Southwest announced an overhaul introducing assigned seats, checked‑bag fees, extra‑legroom options and plans for Starlink Wi‑Fi — changes designed to lift ancillary revenue and margins if executed well. Overhaul details
• Positive Sentiment: Analysts and commentary (Zacks and others) point to upward earnings‑estimate revisions and improving fundamentals that support further share gains if execution continues. Zacks analysis
• Neutral Sentiment: Market context: coverage pieces and pre‑market movers stories (Benzinga/MSN) amplified the reaction, so some of today’s move reflects headlines and momentum rather than fresh company results. Market movers writeup
• Negative Sentiment: Risks include execution and customer reaction to fees, plus Southwest’s recent quarterly revenue slightly missed consensus and margins remain thin — meaning upside depends on successful rollout and mix improvement. Notes on risks and results

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.