Wells Fargo & Company Issues Pessimistic Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target lowered by stock analysts at Wells Fargo & Company from $50.00 to $44.00 in a report released on Monday,Benzinga reports. The firm presently has an “equal weight” rating on the airline’s stock. Wells Fargo & Company‘s price target points to a potential upside of 7.07% from the stock’s current price.

Other equities analysts also recently issued reports about the company. Citigroup boosted their price objective on Southwest Airlines from $44.00 to $54.00 in a research report on Tuesday, February 3rd. Jefferies Financial Group cut their target price on Southwest Airlines from $48.00 to $41.00 and set a “hold” rating on the stock in a research note on Thursday, March 12th. The Goldman Sachs Group boosted their price target on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday, January 30th. Seaport Research Partners increased their price target on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Finally, Evercore raised their price target on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a report on Thursday, January 29th. Eight analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average price target of $46.29.

Southwest Airlines Trading Up 2.1%

Shares of NYSE:LUV opened at $41.09 on Monday. The company has a market cap of $20.19 billion, a PE ratio of 48.92, a P/E/G ratio of 0.29 and a beta of 1.10. The company’s 50-day moving average price is $46.60 and its 200 day moving average price is $38.84. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $55.11. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, topping 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 firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the prior year, the firm earned $0.56 EPS. Southwest Airlines’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Sell-side analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. SHP Wealth Management purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at approximately $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines during the 4th quarter worth approximately $26,000. Entrust Financial LLC purchased a new position in Southwest Airlines during the 4th quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the 4th quarter valued at $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

More Southwest Airlines News

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

• Positive Sentiment: Broader sector strength: Delta and American raised revenue guidance and airlines rallied as demand appears to outweigh the fuel spike — a positive spillover for Southwest given industry-wide pricing power and capacity recovery. Read More.
• Positive Sentiment: UBS retains a “buy” rating on LUV with a $59 price target (lowered), signaling analyst conviction that the shares have significant upside despite fuel pressure. Read More.
• Neutral Sentiment: Management commentary available — Southwest presented at the JPMorgan Industrials Conference; transcript may provide detail on network, costs and fuel hedging that investors will parse for near-term guidance credibility. Read More.
• Neutral Sentiment: UBS and other firms cut estimates and price targets across U.S. airlines citing “significant uncertainty” around jet fuel — this is a sector headwind but also frames a potential valuation bottom for long-term investors. Read More.
• Neutral Sentiment: Industry lobbying and operational risks: airline CEOs urged Congress to resolve a shutdown risk that could disrupt travel demand during a peak period; outcome affects near-term traffic. Read More.
• Negative Sentiment: Wells Fargo cut its price target on LUV to $44 and moved to “equal weight,” signaling reduced upside from that shop and adding selling pressure from some institutional investors. Read More.
• Negative Sentiment: Network change: Southwest will stop serving Chicago O’Hare and Washington Dulles starting June 4 — could lower revenue from those markets and raises questions about capacity redeployment and unit revenue impact. Read More.
• Negative Sentiment: Customer backlash: longtime flyers are publicly criticizing changes to A-List benefits, a reputational issue that can affect loyalty and ancillary revenue trends if not addressed. Read More.
• Negative Sentiment: Analyst downgrades/estimates: Zacks issued a negative earnings estimate for LUV, adding to the chorus of downward revisions that could pressure near-term sentiment. Read More.

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.