Southwest Airlines (NYSE:LUV) Price Target Raised to $35.00

Southwest Airlines (NYSE:LUV) had its price target raised by Rothschild & Co Redburn from $27.00 to $35.00 in a report published on Thursday,Benzinga reports. They currently have a sell rating on the airline’s stock.

LUV has been the topic of a number of other research reports. Susquehanna lifted their price objective on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 3rd. Raymond James Financial raised their target price on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a report on Friday, December 19th. Citigroup boosted their price target on shares of Southwest Airlines from $44.00 to $54.00 in a research report on Tuesday, February 3rd. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. Finally, BNP Paribas Exane increased their price objective on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $48.29.

Southwest Airlines Stock Down 5.5%

LUV opened at $41.47 on Thursday. The company has a market capitalization of $20.38 billion, a PE ratio of 49.37, a price-to-earnings-growth ratio of 0.29 and a beta of 1.10. The firm has a 50-day simple moving average of $46.70 and a two-hundred day simple moving average of $38.39. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $55.11.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the previous year, the firm posted $0.56 earnings per share. The business’s revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 1.7%. Southwest Airlines’s payout ratio is 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently made changes to their positions in the company. MCF Advisors LLC grew its holdings in Southwest Airlines by 28.5% during the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after purchasing an additional 203 shares during the last quarter. World Investment Advisors lifted its stake in Southwest Airlines by 1.0% in the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after purchasing an additional 210 shares during the last quarter. Parkside Financial Bank & Trust lifted its stake in Southwest Airlines by 7.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after purchasing an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its position in shares of Southwest Airlines by 1.5% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after buying an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC grew its stake in shares of Southwest Airlines by 4.2% during the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after buying an additional 272 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Analyst support and upside targets — Several firms still carry Overweight/Outperform views and the recent compilation of analyst targets shows a median near $49, implying potential upside from current levels. Quiver Quant: Analyst Ratings & Targets
• Neutral Sentiment: Longer-term value debate — Some commentary argues the pullback could create a buying opportunity for investors focused on the airline’s multi-year recovery narrative, but this is contested and depends on fuel and execution risks. Yahoo Finance: Is LUV Still Attractive?
• Negative Sentiment: Geopolitical escalation raises fuel-cost and demand fears — Coverage links the U.S.–Israel–Iran tensions to a surge in crude/jet-fuel expectations and a sector-wide selloff, pressuring Southwest because fuel is a major cost and demand for discretionary travel can wobble in crises. Benzinga: Why LUV Is Falling
• Negative Sentiment: Broader oil-driven sector pain — Market notes and price-action analysis tie LUV’s drop to a crude-driven rout across carriers; higher fuel translates to margin risk and triggers rotation away from fuel-sensitive travel names. Quiver Quant: Oil Pressure on Airlines
• Negative Sentiment: Execution and sentiment concerns — Analysis highlights a “double whammy” of Southwest’s structural/logistics challenges (model overhaul) plus renewed fuel inflation that could squeeze margins and investor confidence. Forbes: How Low Can LUV Go?
• Negative Sentiment: Reputational/retail risk from policy changes — Coverage of new customer policies has sparked negative consumer reaction, which can weigh on demand and brand premium that historically differentiated Southwest. TheStreet: Policy Backlash
• Negative Sentiment: Mixed institutional activity & price-target shifts — Large institutional trimming and at least one price-target adjustment (Rothschild raised its target but kept a sell stance) add to near-term uncertainty about sentiment among big holders. Benzinga: Price Target Note

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.