Southwest Airlines (NYSE:LUV) Price Target Cut to $56.00 by Analysts at UBS Group

Southwest Airlines (NYSE:LUV) had its price target reduced by UBS Group from $59.00 to $56.00 in a research note issued to investors on Monday morning,Benzinga reports. UBS Group currently has a buy rating on the airline’s stock.

Other equities research analysts also recently issued reports about the stock. TD Cowen dropped their price target on shares of Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a research note on Monday, March 9th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Jefferies Financial Group dropped their target price on shares of Southwest Airlines from $48.00 to $41.00 and set a “hold” rating for the company in a research report on Thursday, March 12th. Finally, Morgan Stanley increased their price target on Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, January 30th. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $46.25.

Southwest Airlines Trading Up 2.3%

Shares of LUV opened at $40.30 on Monday. The stock’s fifty day simple moving average is $46.33 and its 200-day simple moving average is $39.07. The firm has a market capitalization of $19.80 billion, a PE ratio of 47.98, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $55.11. 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 (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping 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 firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the previous year, the business posted $0.56 EPS. The company’s quarterly revenue 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. As a group, research analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be issued a dividend of $0.18 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.8%. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently modified their holdings of the business. SHP Wealth Management bought a new position in Southwest Airlines in the fourth quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Finally, Optima Capital LLC bought a new stake in Southwest Airlines in the 4th quarter valued at $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.