Southwest Airlines (NYSE:LUV) Given New $59.00 Price Target at UBS Group

Southwest Airlines (NYSE:LUV) had its price objective trimmed by UBS Group to $59.00 in a research note released on Monday morning,Benzinga reports. The firm currently has a buy rating on the airline’s stock.

Several other analysts also recently weighed in on LUV. The Goldman Sachs Group boosted their price objective on Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a research report on Friday, January 30th. Susquehanna raised their target price on shares of Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a report on Tuesday, February 3rd. BNP Paribas Exane lifted their target price on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research note on Monday, December 8th. Raymond James Financial upped their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a report on Friday, December 19th. Finally, Citigroup increased their price target on shares of Southwest Airlines from $44.00 to $54.00 in a research report on Tuesday, February 3rd. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average target price of $46.29.

Southwest Airlines Stock Up 3.7%

LUV opened at $40.18 on Monday. The company has a market cap of $19.74 billion, a P/E ratio of 47.84, a P/E/G ratio of 0.28 and a beta of 1.10. The business’s 50-day moving average price is $46.63 and its 200-day moving average price is $38.79. The company has a current ratio of 0.52, a quick ratio of 0.45 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 $55.11.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share 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 company had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the previous year, the company posted $0.56 EPS. 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. On average, equities analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently made changes to their positions in the business. Franklin Resources Inc. boosted its holdings in Southwest Airlines by 7.0% in the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after purchasing an additional 3,753,183 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in Southwest Airlines by 13.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock worth $389,879,000 after purchasing an additional 1,459,235 shares in the last quarter. Artisan Partners Limited Partnership lifted its position in shares of Southwest Airlines by 0.9% in the 2nd quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after purchasing an additional 98,290 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock valued at $328,305,000 after purchasing an additional 9,716,160 shares in the last quarter. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: UBS lowered its price target on LUV to $59 but kept a “buy” rating, noting upside from current levels; the note supports constructive sentiment despite the cut. Read More.
• Positive Sentiment: UBS says US airline stocks may be near a bottom even after recent declines and expects many carriers to hit the midpoint of Q1 guidance, which helps sector-wide sentiment. Read More.
• Positive Sentiment: A short-term sector rebound — airlines rallied after two rough weeks when jet fuel spiked — is lifting peers including LUV. Read More.
• Neutral Sentiment: Airline CEOs urged Congress to end a government shutdown to avoid travel disruptions over spring break — this is an industry-wide operational risk rather than a Southwest-specific issue. Read More.
• Negative Sentiment: UBS cut price targets and estimates across its U.S. airline coverage, citing “significant uncertainty” around fuel costs and 2026 outlook — a headwind for valuation and analyst sentiment. Read More.
• Negative Sentiment: Wells Fargo trimmed its LUV target from $50 to $44 and moved to an “equal weight” rating, reducing near-term upside expectations. Read More. Read More.
• Negative Sentiment: Southwest will stop flying to Chicago O’Hare and Washington Dulles starting June 4, a network change that could lower revenue from those markets and upset some customers. Read More.
• Negative Sentiment: Longtime flyers are publicly reacting negatively to changes in Southwest’s A-List benefits, signaling potential customer-satisfaction and loyalty risks. Read More.
• Negative Sentiment: Zacks Research has issued negative earnings estimates for LUV, adding downward pressure to near-term expectations. 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.