Southwest Airlines (NYSE:LUV) Given New $45.00 Price Target at Evercore ISI

Southwest Airlines (NYSE:LUV) had its target price raised by Evercore ISI from $40.00 to $45.00 in a research note issued to investors on Thursday morning,Benzinga reports. They currently have an in-line rating on the airline’s stock.

LUV has been the subject of a number of other reports. Bank of America boosted 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. UBS Group upped their target price on shares of Southwest Airlines from $43.00 to $45.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 6th. Susquehanna boosted their price target on shares of Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a report on Friday, January 9th. BMO Capital Markets initiated coverage on shares of Southwest Airlines in a research note on Tuesday, December 9th. They issued a “market perform” rating and a $43.00 price objective for the company. Finally, The Goldman Sachs Group boosted their target price on Southwest Airlines from $26.00 to $29.00 and gave the stock a “sell” rating in a research note on Tuesday, January 13th. Six equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average target price of $42.63.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $48.44 on Thursday. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.52. The firm has a fifty day simple moving average of $40.42 and a 200 day simple moving average of $35.14. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $49.12. The company has a market capitalization of $25.05 billion, a PE ratio of 57.66, a P/E/G ratio of 0.37 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a return on equity of 6.11% and a net margin of 1.57%.The firm’s revenue was up 7.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, sell-side analysts forecast that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Friday, December 26th. Southwest Airlines’s dividend payout ratio is 110.77%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Transcend Capital Advisors LLC lifted its holdings in Southwest Airlines by 4.2% during the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after purchasing an additional 272 shares during the last quarter. Ameriflex Group Inc. raised its position in shares of Southwest Airlines by 7.1% in the second quarter. Ameriflex Group Inc. now owns 4,690 shares of the airline’s stock valued at $148,000 after purchasing an additional 310 shares during the period. Asset Management One Co. Ltd. lifted its stake in shares of Southwest Airlines by 1.7% during the 4th quarter. Asset Management One Co. Ltd. now owns 19,268 shares of the airline’s stock valued at $792,000 after buying an additional 315 shares in the last quarter. Benjamin Edwards Inc. boosted its holdings in Southwest Airlines by 1.4% in the 2nd quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock worth $806,000 after buying an additional 333 shares during the period. Finally, GAMMA Investing LLC grew its stake in Southwest Airlines by 2.4% in the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline’s stock valued at $456,000 after buying an additional 341 shares in the last quarter. Institutional investors own 80.82% of the company’s stock.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Company set FY‑2026 adjusted EPS guidance of at least $4.00 (more than 300% above 2025), signaling a large profit ramp driven by its business transformation; management says momentum in bookings supports the outlook. Read More.
• Positive Sentiment: End of open seating and introduction of assigned seats plus new ancillary fees (bags, seat selection, extra legroom) are expected to materially boost unit revenues and margins — investors see this as a sustainable revenue lever. Read More.
• Positive Sentiment: Q4 EPS modestly beat estimates (EPS topped consensus) and operating profit improved YoY, which together with the guidance reduced near‑term execution concerns for many investors. Read More.
• Neutral Sentiment: Revenue in the quarter trailed some expectations (mixed top‑line vs. estimates), so upside rests on management executing the revenue initiatives and sustaining rate trends. Read More.
• Neutral Sentiment: Analysts are re‑rating and updating targets: some price targets were raised while ratings remain mixed — consensus targets still show dispersion, suggesting investor opinion is split on valuation vs. execution risk. Read More.
• Negative Sentiment: Q1 2026 EPS guidance (0.45) came in below some street estimates, creating a near‑term execution risk window even as full‑year guidance is strong. Read More.
• Negative Sentiment: Unusual options activity showed heavy put buying around the report, indicating some traders hedged or bet on downside volatility despite the upbeat guidance. (No single article link available)

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.