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

Posted by ABMN Staff on Mar 2nd, 2026

Shares of Southwest Airlines Co. (NYSE:LUV – Get Free Report) have been assigned an average recommendation of “Hold” from the twenty analysts that are currently covering the company, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell recommendation, eight have given a hold recommendation, eight have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $49.0278.

LUV has been the subject of several research reports. Wells Fargo & Company raised their price target on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, January 30th. Bank of America raised their target price on shares of Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a research note on Friday, January 30th. The Goldman Sachs Group lifted their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a report on Friday, January 30th. Deutsche Bank Aktiengesellschaft boosted their price objective on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th.

Read Our Latest Stock Report on Southwest Airlines

Southwest Airlines Trading Down 3.4%

Shares of NYSE:LUV opened at $49.20 on Monday. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $55.11. 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 company has a market capitalization of $24.17 billion, a P/E ratio of 58.57, a price-to-earnings-growth ratio of 0.35 and a beta of 1.10. The company has a 50-day simple moving average of $46.30 and a 200 day simple moving average of $37.93.

Southwest Airlines (NYSE:LUV – Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter in the previous year, the business earned $0.56 earnings per share. The business’s 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. Sell-side analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.5%. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently bought and sold shares of LUV. Arrowstreet Capital Limited Partnership grew its position in shares of Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after purchasing an additional 9,716,160 shares in the last quarter. Norges Bank acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $172,038,000. Ameriprise Financial Inc. increased its stake in Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after acquiring an additional 3,753,183 shares during the period. SG Americas Securities LLC raised its holdings in Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after acquiring an additional 3,606,255 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $143,450,000. Institutional investors and hedge funds 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: Management’s overhaul and 2026 guidance are supporting investor confidence — coverage notes the transformation and clearer FY‑2026 targets that helped lift sentiment. A Look At Southwest Airlines (LUV) Valuation As Its Overhaul And 2026 Guidance Boost Investor Confidence
Positive Sentiment: Product changes (assigned seating, extra‑legroom options, expanded distribution, free Wi‑Fi for Rapid Rewards) plus a large 2025 shareholder return (~$2.9B) are reframing Southwest from a low‑cost carrier to a differentiated, revenue‑enhancing operator. Is Southwest’s Bold Shift To Assigned Seating And Perks Altering The Investment Case For LUV?
Positive Sentiment: TD Cowen upgraded LUV from Hold to Buy with a $66 price target, signaling analyst optimism and adding potential upside from improved sentiment and coverage. Benzinga note on TD Cowen upgrade
Positive Sentiment: Short interest dropped meaningfully in February (≈22.6% decline), reducing immediate short‑pressure and indicating some bearish positions have been covered. (Market data summarized publicly.)
Neutral Sentiment: Recent earnings showed a modest EPS beat but a revenue miss; market reaction since the report has been positive overall (LUV up ~5% since earnings), but investors are now parsing forward guidance and execution risks. Why Is Southwest (LUV) Up 5% Since Last Earnings Report?
Neutral Sentiment: Analysts and commentators are debating valuation — some see LUV as still attractive given execution and margin upside, while others flag stretched momentum after the recent run. Are Investors Undervaluing Southwest Airlines (LUV) Right Now?
Negative Sentiment: Sector headwinds: rising crude oil and broader airline weakness (notably United and Delta share drops) are pressuring airline multiples and can offset Southwest’s company‑level gains. United Airlines, Delta Stocks Fall. Why Airlines Are Getting Crushed.
Negative Sentiment: Investor caution remains because higher industry labor costs and legacy carriers’ balance‑sheet issues keep the sector sensitive to macro shocks, which can trigger short‑term pullbacks even for stronger operators. AAL Benefits From Improved Air-Travel Demand Amid High Costs

About Southwest Airlines

(Get Free Report)

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.