Southwest Airlines (NYSE:LUV) Raised to Hold at HSBC

Southwest Airlines (NYSE:LUV) was upgraded by stock analysts at HSBC from a “reduce” rating to a “hold” rating in a report issued on Friday, Marketbeat.com reports. The firm currently has a $36.10 price target on the airline’s stock, up from their previous price target of $24.40. HSBC’s price objective would suggest a potential downside of 8.52% from the stock’s current price.

Other equities analysts also recently issued reports about the company. Morgan Stanley boosted their price objective on Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. Wells Fargo & Company lowered their price objective on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a research report on Monday, March 16th. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Rothschild & Co Redburn boosted their price objective on Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a research report on Thursday, March 5th. Finally, Jefferies Financial Group boosted their price objective on Southwest Airlines from $41.00 to $42.00 and gave the stock a “hold” rating in a research report on Tuesday, March 31st. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Southwest Airlines has a consensus rating of “Hold” and an average price target of $44.31.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $39.46 on Friday. Southwest Airlines has a one year low of $25.89 and a one year high of $55.11. The company has a market cap of $19.38 billion, a PE ratio of 25.46, a P/E/G ratio of 0.43 and a beta of 1.19. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.45 and a current ratio of 0.48. The business has a 50-day simple moving average of $42.72 and a 200-day simple moving average of $40.24.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. During the same period in the previous year, the company posted ($0.13) earnings per share. The business’s revenue for the quarter was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, equities research analysts forecast that Southwest Airlines will post 2.71 EPS for the current fiscal year.

Institutional Trading of Southwest Airlines

Several institutional investors have recently modified their holdings of LUV. AQR Capital Management LLC lifted its position in shares of Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after buying an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after buying an additional 3,141 shares during the last quarter. Empowered Funds LLC lifted its position in shares of Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after buying an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Southwest Airlines by 73.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after buying an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Southwest Airlines by 47.4% during the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. Hedge funds and other 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: Raymond James raised its price target to $55 and kept an Outperform rating, citing margin strength — a bullish analyst action that likely supported the stock. Raymond James raises Southwest stock price target
• Positive Sentiment: Evercore nudged its target higher to $44, and several reports note other firms (and some analysts aggregated by Benzinga) have lifted their forecasts after Q1 — signaling improving analyst confidence in longer‑term recovery. Evercore adjusts price target
• Positive Sentiment: Q1 revenue topped estimates (record quarterly revenue reported), which investors viewed as evidence that the company’s initiatives are driving higher unit revenue. Zacks: Q1 revenue beat
• Neutral Sentiment: Q1 results were mixed: EPS roughly met consensus ($0.45) while revenue beat — a near-term neutral read that keeps investor focus on guidance and fuel trends. Q1 earnings snapshot
• Neutral Sentiment: Management’s earnings call highlighted progress from recent initiatives but reiterated exposure to jet fuel; the transcript provides detail for investors assessing execution vs. cost risk. Earnings call transcript
• Negative Sentiment: Southwest set Q2 adjusted EPS guidance with a midpoint below Street estimates and said updating FY guidance wouldn’t be productive amid macro uncertainty — a clear near‑term negative and the main reason some traders sold into the print. Analysts boost forecasts following Q1
• Negative Sentiment: Surging jet fuel costs are flagged as a material risk that could put full‑year guidance at risk — this cost pressure is cited across media and is weighing on near‑term profitability expectations. Fuel costs risk
• Negative Sentiment: Some analysts trimmed targets or gave cautious ratings (Argus cut its target to $45 from $55; HSBC moved to Hold with a $36.10 target), reflecting mixed views that can cap upside. Argus adjusts price target

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.