Southwest Airlines Co. (NYSE:LUV) Receives Consensus Rating of “Hold” from Analysts

Southwest Airlines Co. (NYSE:LUV) has earned a consensus rating of “Hold” from the twenty brokerages that are currently covering the firm, Marketbeat reports. Four analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and eight have given a buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $46.25.

A number of research analysts have weighed in on LUV shares. Morgan Stanley lifted their price target on shares of Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, January 30th. Zacks Research downgraded shares of Southwest Airlines from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 11th. Citigroup dropped their price objective on shares of Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating on the stock in a report on Friday, March 20th. Wells Fargo & Company cut their price objective on shares of Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a research report on Monday, March 16th. Finally, The Goldman Sachs Group upped 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.

Southwest Airlines Stock Down 1.7%

Shares of Southwest Airlines stock opened at $39.50 on Friday. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The business has a 50-day moving average of $46.15 and a two-hundred day moving average of $39.14. The company has a market capitalization of $19.41 billion, a P/E ratio of 47.02, a price-to-earnings-growth ratio of 0.29 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating 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 business had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the previous year, the business posted $0.56 EPS. Southwest Airlines’s revenue for the quarter 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. As a group, equities analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders 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 dividend yield of 1.8%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s payout ratio is 85.71%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LUV. MCF Advisors LLC boosted its position in Southwest Airlines by 28.5% during the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after acquiring an additional 203 shares during the last quarter. World Investment Advisors raised its holdings in shares of Southwest Airlines by 1.0% in the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock valued at $843,000 after purchasing an additional 210 shares during the last quarter. Parkside Financial Bank & Trust lifted its position in shares of 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 in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its position in shares of Southwest Airlines by 1.5% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after purchasing an additional 235 shares in the last quarter. Finally, Transcend Capital Advisors LLC boosted its holdings in Southwest Airlines by 4.2% during the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after purchasing an additional 272 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors.

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.