Analysts Set Southwest Airlines Co. (NYSE:LUV) Target Price at $49.55

Shares of Southwest Airlines Co. (NYSE:LUV) have been assigned an average recommendation of “Hold” from the twenty-two brokerages that are currently covering the company, Marketbeat.com reports. Four research analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and nine have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $49.0050.

A number of brokerages have recently issued reports on LUV. The Goldman Sachs Group upped their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, July 2nd. Barclays raised their target price on shares of Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Jefferies Financial Group raised their price objective on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research report on Wednesday, July 1st. Wells Fargo & Company raised their price objective on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Finally, Susquehanna lifted their price target on Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 7th.

Southwest Airlines Trading Down 0.3%

Shares of LUV stock opened at $40.70 on Monday. The company’s fifty day simple moving average is $46.92 and its two-hundred day simple moving average is $44.25. The stock has a market capitalization of $19.91 billion, a price-to-earnings ratio of 24.97, a PEG ratio of 0.37 and a beta of 1.14. 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 announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period last year, the firm earned $0.43 EPS. The business’s quarterly revenue was up 16.4% compared to the same quarter last year. 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. As a group, analysts anticipate that Southwest Airlines will post 3.32 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is 44.17%.

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. SHP Wealth Management purchased a new stake in Southwest Airlines in the 4th quarter worth $25,000. Entrust Financial LLC purchased a new position in shares of Southwest Airlines in the fourth quarter valued at about $26,000. Los Angeles Capital Management LLC bought a new position in shares of Southwest Airlines in the fourth quarter worth about $26,000. Archer Investment Corp bought a new position in shares of Southwest Airlines in the second quarter worth about $32,000. Finally, Fiduciary Financial Advisors purchased a new stake in Southwest Airlines during the 2nd quarter valued at approximately $32,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

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.