Jefferies Financial Group Boosts Southwest Airlines (NYSE:LUV) Price Target to $50.00

Southwest Airlines (NYSE:LUV) had its price target increased by research analysts at Jefferies Financial Group from $44.00 to $50.00 in a note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has a “hold” rating on the airline’s stock. Jefferies Financial Group’s price target indicates a potential downside of 3.34% from the company’s current price.

Several other brokerages have also recently issued reports on LUV. BMO Capital Markets cut their price target on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a research note on Tuesday, March 31st. Bank of America raised their price objective on Southwest Airlines from $40.00 to $45.00 in a research note on Wednesday. The Goldman Sachs Group dropped their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. Argus cut their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research report on Friday, April 24th. Finally, JPMorgan Chase & Co. reduced their target price on Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $47.20.

Southwest Airlines Price Performance

Shares of Southwest Airlines stock opened at $51.73 on Wednesday. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The stock has a market capitalization of $25.28 billion, a price-to-earnings ratio of 33.37, a price-to-earnings-growth ratio of 0.54 and a beta of 1.15. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. The company has a 50-day simple moving average of $42.76 and a two-hundred day simple moving average of $43.40.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The firm had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same quarter in the prior year, the business posted ($0.13) EPS. The business’s revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts forecast that Southwest Airlines will post 2.93 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in Southwest Airlines during the fourth quarter worth $172,038,000. Ameriprise Financial Inc. raised its holdings in shares of Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after buying an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC raised its holdings in shares of Southwest Airlines by 2,468.4% during the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after buying an additional 3,606,255 shares in the last quarter. Massachusetts Financial Services Co. MA bought a new stake in shares of Southwest Airlines during the 4th quarter worth $143,450,000. Finally, Franklin Resources Inc. lifted its position in shares of Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after buying an additional 2,626,853 shares during the last quarter. 80.82% of the stock is 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.