Southwest Airlines (NYSE:LUV) Price Target Raised to $60.00 at BMO Capital Markets

Southwest Airlines (NYSE:LUV) had its price target boosted by BMO Capital Markets from $58.50 to $60.00 in a report published on Friday morning,Benzinga reports. They currently have an outperform rating on the airline’s stock.

A number of other analysts have also recently issued reports on LUV. UBS Group increased their price objective on Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. The Goldman Sachs Group upped their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, July 2nd. Citigroup lowered their price target on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Friday. JPMorgan Chase & Co. cut their price objective on shares of Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Bank of America boosted their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a research note on Wednesday, July 1st. Nine 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’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $49.55.

Southwest Airlines Stock Up 1.1%

LUV opened at $45.19 on Friday. The company has a 50 day moving average of $46.01 and a 200 day moving average of $44.29. The company has a market cap of $22.09 billion, a PE ratio of 27.72, a price-to-earnings-growth ratio of 0.37 and a beta of 1.12. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. During the same period in the previous year, the business earned $0.43 EPS. Southwest Airlines’s revenue was up 16.4% compared to the same quarter last year. 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. On average, sell-side analysts expect that Southwest Airlines will post 3.67 EPS for the current year.

Southwest Airlines Dividend Announcement

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

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of LUV. Norges Bank bought a new stake in shares of Southwest Airlines in the 4th quarter valued at about $172,038,000. Massachusetts Financial Services Co. MA purchased a new position in Southwest Airlines in the 4th quarter worth approximately $143,450,000. Franklin Resources Inc. lifted its position in Southwest Airlines by 7.0% in the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after purchasing an additional 2,626,853 shares during the last quarter. Mizuho Markets Americas LLC purchased a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $55,320,000. Finally, Nearwater Capital Markets Ltd boosted its stake in shares of Southwest Airlines by 75.0% during the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline’s stock valued at $115,724,000 after purchasing an additional 1,200,000 shares during the period. Hedge funds and other institutional investors 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

Southwest Airlines Company Profile

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.