Southwest Airlines Co. (NYSE:LUV) Given Average Recommendation of “Hold” by Analysts

Shares of Southwest Airlines Co. (NYSE:LUVGet Free Report) have earned a consensus rating of “Hold” from the twenty brokerages that are currently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have assigned a buy rating to the company. The average 1 year target price among brokers that have covered the stock in the last year is $43.7222.

Several brokerages have issued reports on LUV. Citigroup lowered their target price on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating on the stock in a research note on Friday, March 20th. UBS Group lowered their target price on Southwest Airlines from $59.00 to $56.00 and set a “buy” rating on the stock in a research note on Monday, March 23rd. Rothschild & Co Redburn boosted their target price on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, March 5th. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Finally, Wells Fargo & Company lowered their target price on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a research note on Monday, March 16th.

Read Our Latest Stock Analysis on LUV

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently made changes to their positions in LUV. SHP Wealth Management bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Finally, Corsicana & Co. bought a new stake in shares of Southwest Airlines during the 3rd quarter valued at $27,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $41.81 on Tuesday. The business’s fifty day simple moving average is $43.72 and its 200 day simple moving average is $40.10. The firm has a market capitalization of $20.53 billion, a P/E ratio of 49.77, a price-to-earnings-growth ratio of 0.48 and a beta of 1.19. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $55.11. 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 (NYSE:LUVGet Free Report) last issued its quarterly 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. The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.Southwest Airlines’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same period last year, the company posted $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. As a group, analysts anticipate that Southwest Airlines will post 2.72 EPS for the current year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th were paid a $0.18 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. Southwest Airlines’s payout ratio is presently 85.71%.

About Southwest Airlines

(Get Free Report)

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.

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Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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