Southwest Airlines (NYSE:LUV) Price Target Raised to $58.00

Southwest Airlines (NYSE:LUV) had its price objective boosted by Seaport Research Partners from $57.00 to $58.00 in a research note released on Thursday morning,MarketScreener reports.

A number of other equities analysts also recently commented on the stock. Morgan Stanley upped their target price on Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday. Susquehanna boosted their price target on Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a research report on Friday, January 9th. Bank of America raised their price objective on Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research report on Friday. Wall Street Zen upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. Finally, Jefferies Financial Group increased their price target on shares of Southwest Airlines from $42.00 to $45.00 and gave the company a “hold” rating in a research report on Monday, January 26th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Southwest Airlines currently has an average rating of “Hold” and an average price target of $44.76.

Southwest Airlines Stock Down 2.0%

NYSE:LUV opened at $47.51 on Thursday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.42. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $49.85. The company has a 50-day moving average of $40.71 and a 200 day moving average of $35.20. The firm has a market cap of $24.57 billion, a PE ratio of 56.56, a price-to-earnings-growth ratio of 0.44 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the previous year, the business posted $0.56 EPS. The company’s quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, research analysts anticipate that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were issued a dividend of $0.18 per share. The ex-dividend date was Friday, December 26th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is 85.71%.

Institutional Trading of Southwest Airlines

Several large investors have recently bought and sold shares of the stock. Elevation Point Wealth Partners LLC acquired a new stake in shares of Southwest Airlines during the second quarter worth $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the 4th quarter worth $26,000. Corsicana & Co. purchased a new position in Southwest Airlines in the 3rd quarter worth $27,000. Quent Capital LLC acquired a new stake in Southwest Airlines during the 3rd quarter worth about $27,000. Finally, Optima Capital LLC purchased a new stake in Southwest Airlines during the 4th quarter valued at about $27,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.