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

Southwest Airlines Co. (NYSE:LUV) has received an average recommendation of “Hold” from the twenty-one brokerages that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and six have issued a buy rating on the company. The average 1-year price target among analysts that have covered the stock in the last year is $42.1111.

Several research firms recently weighed in on LUV. Raymond James Financial upped their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research report on Friday, December 19th. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Bank of America raised their target price on Southwest Airlines from $28.00 to $37.00 and gave the company an “underperform” rating in a research report on Tuesday, January 6th. BNP Paribas Exane boosted their price target on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research report on Monday, December 8th. Finally, BMO Capital Markets initiated coverage on Southwest Airlines in a report on Tuesday, December 9th. They issued a “market perform” rating and a $43.00 price objective on the stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Rare double-upgrade from JPMorgan — JPMorgan upgraded LUV from underweight to overweight and lifted its price target to $60, a large upward move that traders say is the main catalyst for the rally as it signals materially higher earnings expectations. Barron’s: Rare Double Upgrade
• Positive Sentiment: Multiple price-target raises — Citi and UBS both bumped targets (Citi to $44, UBS to $45), reinforcing the analyst trend higher and supporting upside in the stock as models are re-priced for better forward earnings. Citi price target raise
• Positive Sentiment: Broader analyst optimism — Citigroup and other firms published bullish commentary forecasting notable price appreciation based on improving fundamentals and potential margin recovery. Citigroup forecast
• Neutral Sentiment: Susquehanna raised its target to $45 but kept a “neutral” rating — the higher target supports the rally but the retained rating tempers how decisive the firm views near-term upside. Benzinga: Susquehanna note
• Neutral Sentiment: Strategic/cabin changes under review — articles on Southwest’s cabin revamp and assigned seating argue these initiatives could reshape unit revenue and customer experience, but benefits depend on execution and timing. Yahoo: Cabin revamp
• Neutral Sentiment: New marketing/partnerships — a legacy partnership with the Chicago Cubs is positive PR and revenue/brand-supportive, but unlikely to move near-term fundamentals materially. MLB press release
• Neutral Sentiment: Mixed analyst landscape — several firms remain cautious/hold-rated (e.g., Wells Fargo), so while sentiment is tilting positive, coverage is not uniformly bullish. Wells Fargo hold

Institutional Investors Weigh In On Southwest Airlines

A number of large investors have recently made changes to their positions in the stock. First Heartland Consultants Inc. purchased a new position in Southwest Airlines during the fourth quarter worth approximately $207,000. SG Americas Securities LLC raised its holdings in shares of Southwest Airlines by 2,468.4% during the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after acquiring an additional 3,606,255 shares during the period. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Southwest Airlines by 2.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 36,047 shares of the airline’s stock worth $1,531,000 after acquiring an additional 1,026 shares during the period. Wedmont Private Capital purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $255,000. Finally, Nordea Investment Management AB purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $31,968,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines Trading Up 3.6%

Shares of NYSE:LUV opened at $44.46 on Friday. The firm has a market capitalization of $22.99 billion, a price-to-earnings ratio of 68.39, a price-to-earnings-growth ratio of 0.27 and a beta of 1.16. The business’s 50 day moving average price is $37.32 and its 200-day moving average price is $34.26. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $45.02.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share for the quarter. The company had revenue of $6.17 billion for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%. On average, equities research analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 16th. Stockholders of record on Friday, December 26th will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, December 26th. Southwest Airlines’s dividend payout ratio (DPR) is currently 110.77%.

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.