Southwest Airlines (NYSE:LUV) Given New $44.00 Price Target at Wells Fargo & Company

Southwest Airlines (NYSE:LUV) had its price objective lowered by Wells Fargo & Company from $50.00 to $44.00 in a report released on Monday morning,Benzinga reports. Wells Fargo & Company currently has an equal weight rating on the airline’s stock.

Other equities analysts also recently issued research reports about the stock. Bank of America upped their price objective on shares of Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research note on Friday, January 30th. The Goldman Sachs Group lifted their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research note on Friday, January 30th. Zacks Research downgraded Southwest Airlines from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 11th. Deutsche Bank Aktiengesellschaft increased their price target on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Finally, Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $34.00 to $56.00 in a report on Tuesday, December 16th. Eight investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $46.29.

Southwest Airlines Trading Up 3.7%

Southwest Airlines stock opened at $40.18 on Monday. The stock has a 50-day moving average price of $46.63 and a 200 day moving average price of $38.79. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $55.11. The stock has a market cap of $19.74 billion, a PE ratio of 47.84, a P/E/G ratio of 0.28 and a beta of 1.10. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57.

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

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s payout ratio is presently 85.71%.

Hedge Funds Weigh In On Southwest Airlines

Large investors have recently bought and sold shares of the stock. Cibc World Market Inc. grew its position in Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock valued at $61,140,000 after acquiring an additional 214,092 shares during the period. Hussman Strategic Advisors Inc. acquired a new stake in Southwest Airlines during the third quarter worth about $2,010,000. Gradient Investments LLC raised its holdings in shares of Southwest Airlines by 5.4% in the 3rd quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock worth $18,447,000 after purchasing an additional 29,665 shares during the period. Rhumbline Advisers raised its holdings in shares of Southwest Airlines by 30.1% in the 2nd quarter. Rhumbline Advisers now owns 1,406,652 shares of the airline’s stock worth $45,632,000 after purchasing an additional 325,030 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in shares of Southwest Airlines by 59.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 727,090 shares of the airline’s stock valued at $23,587,000 after purchasing an additional 270,589 shares in the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Key Southwest Airlines News

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

• Positive Sentiment: UBS lowered its price target on LUV to $59 but kept a “buy” rating, noting upside from current levels; the note supports constructive sentiment despite the cut. Read More.
• Positive Sentiment: UBS says US airline stocks may be near a bottom even after recent declines and expects many carriers to hit the midpoint of Q1 guidance, which helps sector-wide sentiment. Read More.
• Positive Sentiment: A short-term sector rebound — airlines rallied after two rough weeks when jet fuel spiked — is lifting peers including LUV. Read More.
• Neutral Sentiment: Airline CEOs urged Congress to end a government shutdown to avoid travel disruptions over spring break — this is an industry-wide operational risk rather than a Southwest-specific issue. Read More.
• Negative Sentiment: UBS cut price targets and estimates across its U.S. airline coverage, citing “significant uncertainty” around fuel costs and 2026 outlook — a headwind for valuation and analyst sentiment. Read More.
• Negative Sentiment: Wells Fargo trimmed its LUV target from $50 to $44 and moved to an “equal weight” rating, reducing near-term upside expectations. Read More. Read More.
• Negative Sentiment: Southwest will stop flying to Chicago O’Hare and Washington Dulles starting June 4, a network change that could lower revenue from those markets and upset some customers. Read More.
• Negative Sentiment: Longtime flyers are publicly reacting negatively to changes in Southwest’s A-List benefits, signaling potential customer-satisfaction and loyalty risks. Read More.
• Negative Sentiment: Zacks Research has issued negative earnings estimates for LUV, adding downward pressure to near-term expectations. Read More.

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.