Southwest Airlines (NYSE:LUV) Hits New 52-Week High Following Analyst Upgrade

Southwest Airlines Co. (NYSE:LUV) reached a new 52-week high during trading on Wednesday after UBS Group upgraded the stock from a neutral rating to a buy rating. UBS Group now has a $73.00 price target on the stock, up from their previous price target of $51.00. Southwest Airlines traded as high as $55.11 and last traded at $54.18, with a volume of 12953986 shares trading hands. The stock had previously closed at $51.11.

Several other equities analysts have also commented on the stock. JPMorgan Chase & Co. raised shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and upped their price target for the stock from $36.00 to $60.00 in a research report on Friday, January 9th. Jefferies Financial Group upped their price objective on Southwest Airlines from $45.00 to $48.00 and gave the stock a “hold” rating in a report on Monday, February 2nd. Evercore lifted their target price on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a report on Thursday, January 29th. Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Finally, Raymond James Financial upped their price target on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research note on Friday, December 19th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and a consensus price target of $48.14.

More Southwest Airlines News

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

• Positive Sentiment: UBS upgraded LUV from Neutral to Buy and raised its 12‑month price target to $73 (from $51), citing meaningful earnings upside from the carrier’s seating and fee initiatives — a direct driver of today’s rally. UBS upgrade report
• Positive Sentiment: Southwest announced an overhaul introducing assigned seats, checked‑bag fees, extra‑legroom options and plans for Starlink Wi‑Fi — changes designed to lift ancillary revenue and margins if executed well. Overhaul details
• Positive Sentiment: Analysts and commentary (Zacks and others) point to upward earnings‑estimate revisions and improving fundamentals that support further share gains if execution continues. Zacks analysis
• Neutral Sentiment: Market context: coverage pieces and pre‑market movers stories (Benzinga/MSN) amplified the reaction, so some of today’s move reflects headlines and momentum rather than fresh company results. Market movers writeup
• Negative Sentiment: Risks include execution and customer reaction to fees, plus Southwest’s recent quarterly revenue slightly missed consensus and margins remain thin — meaning upside depends on successful rollout and mix improvement. Notes on risks and results

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC purchased a new position in Southwest Airlines in the 2nd quarter worth approximately $25,000. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines in the fourth quarter valued at $26,000. Finally, Corsicana & Co. purchased a new position in shares of Southwest Airlines in the third quarter valued at $27,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines Stock Performance

The firm has a market capitalization of $26.62 billion, a price-to-earnings ratio of 64.50, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The stock’s fifty day moving average is $44.66 and its two-hundred day moving average is $36.73.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Analysts forecast that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

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.