Southwest Airlines (NYSE:LUV) Price Target Cut to $37.00 by Analysts at Jefferies Financial Group

Key Points

• Jefferies Financial Group cut its price target for Southwest from $42 to $37 and kept a "hold" rating, implying roughly a 3.35% downside from the prior close.
• Multiple brokers (including JPMorgan, Citigroup and BMO) also trimmed targets, leaving a MarketBeat consensus rating of "Hold" with a consensus price target of $44.11.
• Shares fell about 3% to $38.28 after Southwest reported Q1 EPS of $0.45 (in line) but revenue of $7.25B missed estimates, and the airline set Q2 guidance of $0.35–$0.65 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price target reduced by investment analysts at Jefferies Financial Group from $42.00 to $37.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "hold" rating on the airline's stock. Jefferies Financial Group's price objective suggests a potential downside of 3.35% from the company's previous close.

Several other equities analysts also recently commented on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Southwest Airlines from $58.00 to $56.00 in a research note on Friday, March 27th. Wall Street Zen downgraded shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Citigroup lowered their price objective on shares of Southwest Airlines from $54.00 to $44.00 and set a "neutral" rating for the company in a research note on Friday, March 20th. Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday. Finally, BMO Capital Markets reduced their price target on shares of Southwest Airlines from $57.50 to $45.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 31st. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $44.11.

Southwest Airlines Trading Down 3.0%

Shares of NYSE:LUV traded down $1.17 during midday trading on Monday, hitting $38.28. 3,866,483 shares of the stock traded hands, compared to its average volume of 9,660,531. The stock has a market capitalization of $18.71 billion, a PE ratio of 24.72, a P/E/G ratio of 0.44 and a beta of 1.19. The business's 50 day moving average is $42.72 and its two-hundred day moving average is $40.30. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. Southwest Airlines has a one year low of $26.26 and a one year high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, meeting the consensus estimate of $0.45. The firm had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company's quarterly revenue was up 12.8% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, research analysts forecast that Southwest Airlines will post 2.76 earnings per share for the current year.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the stock. Y Intercept Hong Kong Ltd grew its holdings in Southwest Airlines by 93.7% in the first quarter. Y Intercept Hong Kong Ltd now owns 372,178 shares of the airline's stock worth $13,983,000 after purchasing an additional 180,040 shares during the period. Leonteq Securities AG grew its holdings in Southwest Airlines by 63.4% in the first quarter. Leonteq Securities AG now owns 8,240 shares of the airline's stock worth $310,000 after purchasing an additional 3,196 shares during the period. Sound Income Strategies LLC grew its holdings in Southwest Airlines by 282.2% in the first quarter. Sound Income Strategies LLC now owns 3,811 shares of the airline's stock worth $146,000 after purchasing an additional 2,814 shares during the period. Strs Ohio grew its holdings in Southwest Airlines by 665.1% in the first quarter. Strs Ohio now owns 301,720 shares of the airline's stock worth $11,336,000 after purchasing an additional 262,283 shares during the period. Finally, Keybank National Association OH purchased a new stake in Southwest Airlines in the first quarter worth about $307,000. Hedge funds and other institutional investors own 80.82% of the company's stock.

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.

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