Southwest Airlines Co. (NYSE:LUV) Stock Has Consensus Target Price of $47.45

Southwest Airlines Co. (NYSE:LUV) has earned an average rating of “Hold” from the twenty-two brokerages that are presently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and nine have issued a buy recommendation on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $47.45.

A number of research analysts recently weighed in on LUV shares. Barclays cut their target price on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating for the company in a report on Friday, September 11th. BMO Capital Markets decreased their price target on shares of Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating on the stock in a research note on Monday, September 28th. JPMorgan Chase & Co. decreased their price target on shares of Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a research note on Friday, July 24th. TD Cowen lowered their price objective on shares of Southwest Airlines from $48.00 to $47.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. Finally, Rothschild & Co Redburn raised shares of Southwest Airlines from a “sell” rating to a “neutral” rating and lifted their price objective for the stock from $35.00 to $40.00 in a research note on Friday, September 18th.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. V Square Quantitative Management LLC raised its position in Southwest Airlines by 33.6% during the third quarter. V Square Quantitative Management LLC now owns 9,683 shares of the airline’s stock valued at $403,000 after purchasing an additional 2,435 shares during the period. QRG Capital Management Inc. boosted its holdings in shares of Southwest Airlines by 8.0% in the 2nd quarter. QRG Capital Management Inc. now owns 35,341 shares of the airline’s stock worth $1,817,000 after purchasing an additional 2,632 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Southwest Airlines by 12.2% in the 2nd quarter. Envestnet Asset Management Inc. now owns 718,567 shares of the airline’s stock worth $36,949,000 after purchasing an additional 77,989 shares during the period. WINTON GROUP Ltd boosted its holdings in shares of Southwest Airlines by 218.8% in the 2nd quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline’s stock worth $4,825,000 after purchasing an additional 64,402 shares during the period. Finally, Engineers Gate Manager LP increased its position in shares of Southwest Airlines by 75.1% during the 2nd quarter. Engineers Gate Manager LP now owns 814,820 shares of the airline’s stock valued at $41,898,000 after purchasing an additional 349,394 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines Stock Performance

NYSE LUV opened at $40.85 on Tuesday. The stock has a market capitalization of $19.98 billion, a PE ratio of 18.91, a P/E/G ratio of 1.02 and a beta of 1.16. The business has a 50 day simple moving average of $41.17 and a two-hundred day simple moving average of $42.80. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. Southwest Airlines has a 1-year low of $29.26 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%. The company’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.43 EPS. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, research analysts predict that Southwest Airlines will post 2.98 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were issued a $0.18 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. Southwest Airlines’s payout ratio is 44.17%.

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest is revamping Rapid Rewards for 2027 with Silver, Gold, and Platinum tiers, replacing A-List and A-List Preferred. Expanded benefits, redemption options, and premium-member perks could improve customer retention, attract higher-value travelers, and create additional loyalty-program revenue. Reuters article on Southwest’s loyalty program overhaul
• Positive Sentiment: The broader Rapid Rewards expansion is designed to provide benefits throughout the travel journey, potentially strengthening Southwest’s competitive position as it seeks to appeal to more affluent and frequent travelers. Southwest Rapid Rewards expansion announcement
• Neutral Sentiment: Southwest plans to open an Icon Lounge at Nashville International Airport in 2027. The lounge could enhance the passenger experience and support the carrier’s premium strategy, although the near-term financial contribution is likely limited and construction will require investment. Tennessean article on Southwest’s Nashville lounge
• Negative Sentiment: Analysts expect Southwest’s upcoming third-quarter results to face pressure from higher fuel and labor expenses. Strong bookings and revenue growth may provide support, but previews suggest the company lacks some of the indicators typically associated with a likely earnings beat, keeping investors focused on margins and guidance. Southwest third-quarter earnings preview

About Southwest Airlines

Southwest Airlines Co is a U.S. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.