Southwest Airlines Co. (NYSE:LUV) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Southwest Airlines has a consensus “Hold” rating from 22 analysts: nine rate it a buy, nine a hold and four a sell. The average 12-month price target is $49.56, above the reported opening price of $40.41.
• The airline exceeded quarterly expectations, reporting $0.94 in EPS versus the $0.52 consensus and $8.72 billion in revenue versus $8.58 billion expected. Analysts project full-year EPS of approximately $3.41.
• Southwest declared a quarterly dividend of $0.18, equal to an annualized $0.72 and a 1.8% yield. Institutional investors own 80.82% of the company, with several major funds recently establishing or expanding positions.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) has earned a consensus rating of "Hold" from the twenty-two research firms that are covering the company, Marketbeat.com reports. Four research analysts have rated the stock with a sell recommendation, nine have given a hold recommendation and nine have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $49.5550.

LUV has been the subject of a number of research analyst reports. Weiss Ratings upgraded Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 18th. Zacks Research upgraded Southwest Airlines from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. BMO Capital Markets lifted their price target on Southwest Airlines from $58.50 to $60.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. TD Cowen boosted their price target on Southwest Airlines from $47.00 to $53.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Finally, Wall Street Zen raised Southwest Airlines from a "hold" rating to a "buy" rating in a report on Sunday, July 5th.

Southwest Airlines Trading Up 0.1%

LUV stock opened at $40.41 on Monday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The company has a fifty day moving average price of $47.28 and a two-hundred day moving average price of $44.49. Southwest Airlines has a one year low of $29.26 and a one year high of $55.11. The stock has a market cap of $19.77 billion, a price-to-earnings ratio of 24.79, a price-to-earnings-growth ratio of 0.36 and a beta of 1.14.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its earnings results 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 company had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines's quarterly revenue was up 16.4% compared to the same quarter last year. During the same quarter last 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. Equities analysts anticipate that Southwest Airlines will post 3.41 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be paid a $0.18 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. Southwest Airlines's dividend payout ratio is 44.17%.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently bought and sold shares of the business. Primecap Management Co. CA acquired a new position in Southwest Airlines in the 2nd quarter valued at $2,509,179,000. BlackRock Inc. bought a new stake in shares of Southwest Airlines during the 2nd quarter valued at $1,538,382,000. Bank of New York Mellon Corp acquired a new stake in shares of Southwest Airlines during the 2nd quarter worth $234,872,000. Norges Bank acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $172,038,000. Finally, Franklin Resources Inc. grew its holdings 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 purchasing an additional 2,626,853 shares in 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.

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