Southwest Airlines Co. (NYSE:LUV) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Southwest Airlines has a consensus analyst rating of “Hold”, based on 22 analysts; the breakdown includes five sells, eight holds, and nine buys, with an average 12-month price target of about $44.21.
• Recent analyst moves were mixed, with Goldman Sachs cutting its target to $30 and keeping a sell rating, while Raymond James raised its target to $55 and maintained an outperform rating.
• Operationally, Southwest announced a Singapore Airlines interline partnership and a “Week of WOW” fare sale, while the stock also pays a quarterly dividend of $0.18 per share and yielded about 1.7% annually.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) has earned an average recommendation of "Hold" from the twenty-two analysts that are presently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have issued a buy rating on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $44.2050.

Several research analysts have recently issued reports on LUV shares. The Goldman Sachs Group dropped their price objective on shares of Southwest Airlines from $32.00 to $30.00 and set a "sell" rating on the stock in a report on Wednesday, April 1st. BNP Paribas Exane boosted their price objective on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an "underperform" rating in a report on Tuesday, April 21st. Argus decreased their target price on shares of Southwest Airlines from $55.00 to $45.00 and set a "buy" rating on the stock in a research report on Friday, April 24th. Wall Street Zen upgraded shares of Southwest Airlines from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Raymond James Financial lifted their target price on shares of Southwest Airlines from $45.00 to $55.00 and gave the company an "outperform" rating in a research report on Friday, April 24th.

More Southwest Airlines News

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

• Positive Sentiment: Southwest announced an interline partnership with Singapore Airlines, which should make it easier for travelers to book single-ticket itineraries and could support customer reach and revenue opportunities. Southwest Airlines Begins Interline Partnership With Singapore Airlines
• Positive Sentiment: The company also launched its “Week of WOW” fare sale, offering discounts on flights and travel packages that could help stimulate bookings and keep demand healthy. Say Wow to Discount Travel: Southwest Airlines Delivers Week of Deals on Flights, Hotels, Cars, and Vacations
• Positive Sentiment: Southwest was highlighted as a top-ranked value stock, which may attract value-focused investors looking for relatively attractive fundamentals. Southwest Airlines (LUV) Is a Top-Ranked Value Stock: Should You Buy?
• Positive Sentiment: Southwest reportedly reduced its share count in Q1 through repurchases, which can support earnings per share over time. These 3 Stocks Lowered Their Share Counts Drastically in Q1
• Neutral Sentiment: Industry commentary suggests the airline product gap may widen as stronger carriers keep investing while weaker rivals struggle, which is more of a long-term competitive backdrop than an immediate Southwest-specific catalyst. Fuel Price Shock to Widen Product Gap Between US Airlines
• Negative Sentiment: The IATA sharply cut its 2026 airline profit forecast as oil prices rise, reinforcing concerns that higher fuel costs could squeeze margins for Southwest and peers. 3 Airline Stocks to Watch Amid IATA's Subdued 2026 Profit Forecast
• Negative Sentiment: Reuters also reported that U.S. airline fuel costs jumped sharply in April, underscoring the near-term earnings pressure from elevated jet fuel prices. US Airlines Fuel Costs Soared in April to $6.5 Billion

Institutional Trading of Southwest Airlines

Several institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC boosted its position in shares of Southwest Airlines by 34.5% during the 1st quarter. Parallel Advisors LLC now owns 7,245 shares of the airline's stock valued at $272,000 after acquiring an additional 1,859 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of Southwest Airlines by 954.1% during the 1st quarter. NewEdge Advisors LLC now owns 127,331 shares of the airline's stock valued at $4,784,000 after acquiring an additional 115,251 shares in the last quarter. Cozad Asset Management Inc. acquired a new stake in shares of Southwest Airlines during the 1st quarter valued at about $669,000. Glenmede Trust Co. NA boosted its position in shares of Southwest Airlines by 1.5% during the 1st quarter. Glenmede Trust Co. NA now owns 107,640 shares of the airline's stock valued at $4,044,000 after acquiring an additional 1,583 shares in the last quarter. Finally, Verus Capital Partners LLC boosted its position in shares of Southwest Airlines by 40.7% during the 1st quarter. Verus Capital Partners LLC now owns 7,070 shares of the airline's stock valued at $266,000 after acquiring an additional 2,046 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Stock Performance

NYSE:LUV opened at $43.16 on Wednesday. The firm's 50-day moving average is $40.08 and its 200-day moving average is $42.06. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The company has a market cap of $21.09 billion, a price-to-earnings ratio of 27.84, a PEG ratio of 0.45 and a beta of 1.15.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter in the previous year, the firm 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. Equities research analysts anticipate that Southwest Airlines will post 2.81 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Thursday, June 11th. Southwest Airlines's payout ratio is 46.45%.

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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