Southwest Airlines (NYSE:LUV) Price Target Raised to $33.00

Southwest Airlines (NYSE:LUV) had its target price raised by BNP Paribas Exane from $24.00 to $33.00 in a research report released on Tuesday morning,MarketScreener reports. The brokerage currently has an underperform rating on the airline’s stock.

A number of other analysts have also commented on LUV. Rothschild & Co Redburn lifted their price target on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, March 5th. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. BMO Capital Markets cut their price target on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 31st. Wells Fargo & Company cut their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a research note on Monday, March 16th. Finally, Evercore lifted their price target on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research note on Thursday, January 29th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Southwest Airlines presently has a consensus rating of “Hold” and a consensus target price of $44.22.

Southwest Airlines Stock Performance

LUV opened at $37.79 on Tuesday. The firm has a market cap of $18.56 billion, a P/E ratio of 24.38, a price-to-earnings-growth ratio of 0.44 and a beta of 1.19. Southwest Airlines has a 52-week low of $24.63 and a 52-week 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. The business’s fifty day moving average is $42.96 and its 200-day moving average is $40.14.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. The company had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a return on equity of 10.30% and a net margin of 2.83%.Southwest Airlines’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Sell-side analysts expect that Southwest Airlines will post 2.72 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Thursday, March 12th. Southwest Airlines’s payout ratio is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its holdings in shares of Southwest Airlines by 100.6% during the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after acquiring an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after acquiring an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after acquiring an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after acquiring an additional 98,986 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Transformation driving results: Southwest said its commercial and operational initiatives are fully implemented, producing record quarterly passenger and unit revenue, stronger operating margin (4.6%) and positive net income of $227M. PR Newswire: First Quarter Results
• Positive Sentiment: Earnings met consensus: Q1 EPS of $0.45 matched analyst expectations, and management highlighted record revenue and stronger cash generation (operating cash flow ~$1.4B). Zacks: Q1 Earnings Meet Estimates
• Neutral Sentiment: Analyst views mixed: Some firms remain bullish and see upside (recent price targets range widely), but ratings and targets are split — keeping consensus expectations dispersed. American Banking News: Analyst Forecast
• Negative Sentiment: Weak near-term guidance: Management issued Q2 adjusted EPS guidance of $0.35–$0.65 (midpoint below the Street), and said updating full‑year EPS guidance isn’t productive amid macro and fuel uncertainty — a primary driver of the selloff. Reuters: Q2 Profit Forecast Below Estimates
• Negative Sentiment: Rising jet fuel pressure: CEO Bob Jordan told media he expects higher jet fuel prices for the remainder of the year, which will squeeze margins despite revenue gains — mirroring sector-wide guidance cuts. CNBC Interview: CEO on Fuel
• Negative Sentiment: Mixed metric flow: although revenue was record-high year-over-year (~$7.25B), some outlets flagged misses relative to certain consensus figures and operating profit and EPS declined versus year-ago levels, adding to investor caution. Yahoo Finance: Q1 Snapshot

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.