Jefferies Financial Group Cuts Southwest Airlines (NYSE:LUV) Price Target to $41.00

Southwest Airlines (NYSE:LUV) had its price target lowered by Jefferies Financial Group from $48.00 to $41.00 in a research report report published on Thursday,Benzinga reports. The firm currently has a hold rating on the airline’s stock.

Other research analysts have also issued reports about the company. The Goldman Sachs Group boosted their price target on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday, January 30th. Zacks Research upgraded Southwest Airlines from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 30th. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. BMO Capital Markets upgraded shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and raised their price target for the company from $43.00 to $57.50 in a report on Friday, January 30th. Finally, Bank of America boosted 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. Eight equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $47.34.

Southwest Airlines Trading Up 0.4%

NYSE:LUV opened at $38.77 on Thursday. The firm has a 50-day simple moving average of $46.67 and a 200-day simple moving average of $38.70. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11. The firm has a market cap of $19.05 billion, a P/E ratio of 46.15, a P/E/G ratio of 0.28 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period last year, the firm 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. Equities analysts anticipate that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced 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 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, March 12th. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. MCF Advisors LLC increased its holdings in Southwest Airlines by 28.5% in the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after buying an additional 203 shares during the period. World Investment Advisors boosted its holdings in shares of Southwest Airlines by 1.0% in the 4th quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock valued at $843,000 after acquiring an additional 210 shares during the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock valued at $127,000 after acquiring an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of Southwest Airlines by 1.5% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after acquiring an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC raised its holdings in shares of Southwest Airlines by 4.2% during the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after purchasing an additional 272 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: Unusual call buying — Traders purchased roughly 49,224 LUV calls (about a 104% jump vs. typical daily call volume), which suggests short-term bullish speculative activity or hedging that can support the share price.
• Neutral Sentiment: Valuation pieces highlight recent share weakness and longer-term gains — Coverage notes LUV has declined in the past month and 3 months, prompting fresh valuation discussion even as 1‑year returns remain strong; these analyses may attract bargain hunters or prompt more selling depending on investor view. Assessing Southwest Airlines (LUV) Valuation After Recent Share Price Weakness
• Neutral Sentiment: Price-target and thematic pieces summarize street views for 2026 — Roundups of Wall Street price predictions and longer-term outlooks provide context but don’t move fundamentals immediately. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Neutral Sentiment: Redburn raised its price target to $35 but kept a Sell rating — mixed signal: a higher target is constructive while the Sell stance keeps downside narrative alive. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating
• Negative Sentiment: Southwest will end service at Chicago O’Hare and Washington Dulles — exits from two major airports shrink network reach and could reduce revenue or market share in those metros, raising near-term growth concerns. Southwest Airlines ends service to Chicago’s O’Hare and Washington’s Dulles airports Southwest Airlines to end service at O’Hare, Dulles
• Negative Sentiment: Analyst downgrades and lower earnings estimates — Jefferies cut its price target to $41 (Hold) and Zacks moved LUV from Strong‑Buy to Hold while trimming FY2028 EPS — these reduce analyst support and can pressure sentiment. Southwest Airlines (NYSE:LUV) Price Target Lowered to $41.00 at Jefferies Financial Group Zacks.com
• Negative Sentiment: Oil spike and geopolitical risk — Coverage warns that oil returning toward $100/barrel amid the Iran conflict materially raises jet fuel costs and could compress margins across carriers; sector pain can drag LUV despite company-specific factors. Airline Stocks Were Pricing 2026 Like A Runway―Oil Just Made It A Cliff Edge Only 3 U.S. Airlines Can Remain Profitable at Current Oil Prices
• Negative Sentiment: Near-term selling pressure — multiple outlets noted shares sliding last week/month and premarket weakness tied to oil and supply concerns, which can amplify short-term volatility. Why Is Southwest Airlines Stock Sliding Thursday?

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.