Southwest Airlines (NYSE:LUV) Price Target Cut to $37.00 by Analysts at Jefferies Financial Group

Southwest Airlines (NYSE:LUV) had its price objective decreased by Jefferies Financial Group from $42.00 to $37.00 in a research note issued to investors on Monday morning,Benzinga reports. Jefferies Financial Group currently has a hold rating on the airline’s stock.

Several other research firms also recently weighed in on LUV. Wall Street Zen downgraded shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. JPMorgan Chase & Co. dropped their price objective on shares of Southwest Airlines from $58.00 to $56.00 in a research note on Friday, March 27th. Morgan Stanley raised their target price on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. TD Cowen boosted their target price on Southwest Airlines from $46.00 to $47.00 and gave the stock a “buy” rating in a report on Monday. Finally, Argus dropped their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research report on Friday. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus target price of $44.11.

Southwest Airlines Stock Down 2.9%

Shares of LUV opened at $38.29 on Monday. The stock has a 50 day moving average price of $42.47 and a 200 day moving average price of $40.34. Southwest Airlines has a one year low of $26.26 and a one year high of $55.11. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The stock has a market capitalization of $18.71 billion, a price-to-earnings ratio of 24.70, a PEG ratio of 0.44 and a beta of 1.19.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same quarter last year, the firm posted ($0.13) EPS. The firm’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. Equities research analysts forecast that Southwest Airlines will post 2.76 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, March 12th were 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 was Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is presently 46.45%.

Hedge Funds Weigh In On Southwest Airlines

Several institutional investors and hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC raised 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 valued at $1,303,000 after buying an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares during the period. Empowered Funds LLC increased its stake in Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after purchasing an additional 2,408 shares during the period. Finally, First Trust Advisors LP raised its position in Southwest Airlines by 47.4% in the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after purchasing an additional 98,986 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.