Southwest Airlines (NYSE:LUV) Given New $59.00 Price Target at JPMorgan Chase & Co.

Southwest Airlines (NYSE:LUV) had its target price cut by JPMorgan Chase & Co. from $60.00 to $59.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have an overweight rating on the airline’s stock.

Several other equities analysts have also commented on the company. TD Cowen raised their price target on Southwest Airlines from $47.00 to $53.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. BMO Capital Markets raised their target price on shares of Southwest Airlines from $45.00 to $58.50 and gave the company an “outperform” rating in a research report on Thursday, July 2nd. Morgan Stanley raised their target price on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday, July 6th. Finally, Argus reduced their price target on shares of Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 24th. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $49.55.

Southwest Airlines Stock Performance

Southwest Airlines stock opened at $45.19 on Friday. The company has a 50 day moving average price of $46.01 and a 200-day moving average price of $44.29. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.41 and a current ratio of 0.49. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The company has a market capitalization of $22.09 billion, a PE ratio of 27.72, a P/E/G ratio of 0.37 and a beta of 1.12.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.Southwest Airlines’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. As a group, equities analysts forecast that Southwest Airlines will post 3.67 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a $0.18 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.6%. Southwest Airlines’s dividend payout ratio (DPR) is presently 44.17%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the business. North Dakota State Investment Board purchased a new stake in Southwest Airlines during the fourth quarter worth $2,189,000. Altfest L J & Co. Inc. purchased a new stake in shares of Southwest Airlines during the 4th quarter worth about $1,403,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of Southwest Airlines by 5.7% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 575,639 shares of the airline’s stock valued at $23,774,000 after acquiring an additional 31,128 shares during the period. Kercheville Advisors LLC grew its position in shares of Southwest Airlines by 111.7% during the 4th quarter. Kercheville Advisors LLC now owns 129,524 shares of the airline’s stock valued at $5,497,000 after acquiring an additional 68,350 shares during the period. Finally, Strs Ohio increased its stake in shares of Southwest Airlines by 250.1% in the 4th quarter. Strs Ohio now owns 39,437 shares of the airline’s stock valued at $1,630,000 after purchasing an additional 28,172 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

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.