Southwest Airlines (NYSE:LUV) Cut to “Hold” at Wall Street Zen

Southwest Airlines (NYSE:LUV) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

A number of other research firms have also recently weighed in on LUV. Rothschild & Co Redburn raised their price objective on shares of Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a report on Thursday, March 5th. Citigroup upped their target price on shares of Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. Deutsche Bank Aktiengesellschaft increased their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, December 12th. Evercore lifted their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research note on Thursday, January 29th. Finally, Wells Fargo & Company upped their price objective on shares of Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. Eight research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines has an average rating of “Hold” and an average target price of $47.34.

Southwest Airlines Trading Up 0.4%

NYSE:LUV opened at $38.77 on Friday. The stock has a 50-day simple moving average of $46.67 and a 200-day simple moving average of $38.66. The stock has a market cap of $19.05 billion, a P/E ratio of 46.15, a P/E/G ratio of 0.28 and a beta of 1.10. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

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

Institutional Trading of Southwest Airlines

A number of large investors have recently bought and sold shares of the business. MCF Advisors LLC increased its stake in Southwest Airlines by 28.5% in the fourth 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 period. World Investment Advisors boosted its stake in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after buying an additional 210 shares during the period. Parkside Financial Bank & Trust grew its holdings in shares of Southwest Airlines by 7.5% during the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after buying an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its position in Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after acquiring an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC raised its stake in Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after acquiring an additional 272 shares during the last quarter. Institutional investors and hedge funds 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: Unusual call buying — Traders purchased roughly 49,224 LUV calls (about a 104% jump vs. typical daily call volume), which suggests short-term bullish speculative activity or hedging that can support the share price.
• Neutral Sentiment: Valuation pieces highlight recent share weakness and longer-term gains — Coverage notes LUV has declined in the past month and 3 months, prompting fresh valuation discussion even as 1‑year returns remain strong; these analyses may attract bargain hunters or prompt more selling depending on investor view. Assessing Southwest Airlines (LUV) Valuation After Recent Share Price Weakness
• Neutral Sentiment: Price-target and thematic pieces summarize street views for 2026 — Roundups of Wall Street price predictions and longer-term outlooks provide context but don’t move fundamentals immediately. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Neutral Sentiment: Redburn raised its price target to $35 but kept a Sell rating — mixed signal: a higher target is constructive while the Sell stance keeps downside narrative alive. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating
• Negative Sentiment: Southwest will end service at Chicago O’Hare and Washington Dulles — exits from two major airports shrink network reach and could reduce revenue or market share in those metros, raising near-term growth concerns. Southwest Airlines ends service to Chicago’s O’Hare and Washington’s Dulles airports Southwest Airlines to end service at O’Hare, Dulles
• Negative Sentiment: Analyst downgrades and lower earnings estimates — Jefferies cut its price target to $41 (Hold) and Zacks moved LUV from Strong‑Buy to Hold while trimming FY2028 EPS — these reduce analyst support and can pressure sentiment. Southwest Airlines (NYSE:LUV) Price Target Lowered to $41.00 at Jefferies Financial Group Zacks.com
• Negative Sentiment: Oil spike and geopolitical risk — Coverage warns that oil returning toward $100/barrel amid the Iran conflict materially raises jet fuel costs and could compress margins across carriers; sector pain can drag LUV despite company-specific factors. Airline Stocks Were Pricing 2026 Like A Runway―Oil Just Made It A Cliff Edge Only 3 U.S. Airlines Can Remain Profitable at Current Oil Prices
• Negative Sentiment: Near-term selling pressure — multiple outlets noted shares sliding last week/month and premarket weakness tied to oil and supply concerns, which can amplify short-term volatility. Why Is Southwest Airlines Stock Sliding Thursday?

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.