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

Southwest Airlines (NYSE:LUV) had its target price lowered by TD Cowen from $66.00 to $55.00 in a report issued on Monday morning,Benzinga reports. The brokerage currently has a buy rating on the airline’s stock.

Several other research firms have also issued reports on LUV. The Goldman Sachs Group upped their price target on shares of Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday, January 30th. Morgan Stanley lifted their price objective on shares of Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, January 30th. Raymond James Financial boosted their price objective on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research note on Friday, December 19th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Finally, Wall Street Zen upgraded shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and an average price target of $47.71.

Southwest Airlines Stock Up 3.6%

NYSE:LUV opened at $43.05 on Monday. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $55.11. The firm has a market capitalization of $21.15 billion, a price-to-earnings ratio of 51.25, a price-to-earnings-growth ratio of 0.29 and a beta of 1.10. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock’s 50 day moving average price is $46.74 and its two-hundred day moving average price is $38.52.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter in the prior year, the firm posted $0.56 EPS. The firm’s revenue for the quarter was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Equities research analysts expect that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s payout ratio is 85.71%.

Institutional Trading of Southwest Airlines

Hedge funds have recently modified their holdings of the stock. Franklin Resources Inc. boosted its holdings in shares of Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after buying an additional 2,626,853 shares during the period. Ameriprise Financial Inc. lifted its position in Southwest Airlines by 43.7% during the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after acquiring an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Southwest Airlines by 13.6% during the third quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock worth $389,879,000 after acquiring an additional 1,459,235 shares during the last quarter. Artisan Partners Limited Partnership boosted its holdings in shares of Southwest Airlines by 0.9% during the second quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after acquiring an additional 98,290 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of Southwest Airlines by 2,403.8% during the second quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after acquiring an additional 9,716,160 shares during the period. 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: TD Cowen kept a buy rating on LUV while lowering its price target from $66 to $55 — the new target still implies meaningful upside from current levels, which supports bullish interest. Read More.
• Positive Sentiment: Zacks Research recommends buying Southwest (alongside other airlines) despite higher fuel prices, signaling some analysts see LUV’s valuation and recovery prospects as attractive versus peers. Read More.
• Neutral Sentiment: Coverage of global airlines’ fuel-hedging shows mixed outcomes across carriers—some will be protected and others exposed—so LUV’s near-term earnings impact depends on how its hedges and fuel pass-throughs perform. Read More.
• Negative Sentiment: Multiple outlets report that rising jet-fuel costs (crude >$100/bbl) and flight disruptions tied to the Middle East conflict are pressuring airline margins and pushing airfare expectations higher, weighing on airline stocks broadly. Read More.
• Negative Sentiment: A focused piece on Southwest notes increased fuel costs, wage inflation, aircraft delivery delays and new customer/policy changes — a combination that raises near-term cost and operational uncertainty for LUV. Read More.
• Negative Sentiment: Market coverage (Barron’s, The Motley Fool) highlights travel and leisure stocks as among the worst-hit since the Iran war began, underscoring sector-wide downside risk if fuel remains elevated or cancellations persist. Read More.
• Negative Sentiment: Broad market notes and minute-by-minute coverage show airline names, including Southwest, trading lower intraday on news of grounded flights and profit concerns—heightening short-term volatility. Read More.

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.