Citigroup Cuts Southwest Airlines (NYSE:LUV) Price Target to $44.00

Southwest Airlines (NYSE:LUV) had its price target cut by Citigroup from $54.00 to $44.00 in a research report report published on Friday,Benzinga reports. They currently have a neutral rating on the airline’s stock.

Several other brokerages have also commented on LUV. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. The Goldman Sachs Group raised their price objective on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a research report on Friday, January 30th. TD Cowen reduced their price objective on shares of Southwest Airlines from $66.00 to $55.00 and set a “buy” rating on the stock in a report on Monday, March 9th. Sanford C. Bernstein upped their target price on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research report on Thursday, November 20th. Finally, Seaport Research Partners increased their target price on shares of Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $46.42.

Southwest Airlines Stock Down 3.8%

Shares of NYSE LUV opened at $39.34 on Friday. The company has a market capitalization of $19.33 billion, a P/E ratio of 46.83, a P/E/G ratio of 0.28 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The company has a 50 day simple moving average of $46.41 and a 200-day simple moving average of $39.00. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11.

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

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. Southwest Airlines’s dividend payout ratio is currently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Large investors have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. raised its position in Southwest Airlines by 19.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 79,357 shares of the airline’s stock valued at $3,280,000 after purchasing an additional 12,779 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Southwest Airlines by 27.9% in the fourth quarter. Corient Private Wealth LLC now owns 85,759 shares of the airline’s stock valued at $3,545,000 after acquiring an additional 18,685 shares in the last quarter. Hsbc Holdings PLC lifted its stake in Southwest Airlines by 23.8% in the fourth quarter. Hsbc Holdings PLC now owns 939,398 shares of the airline’s stock worth $38,916,000 after acquiring an additional 180,619 shares during the last quarter. SHP Wealth Management acquired a new position in Southwest Airlines during the 4th quarter worth approximately $25,000. Finally, Strategic Investment Solutions Inc. IL increased its position in shares of Southwest Airlines by 37.9% in the 4th quarter. Strategic Investment Solutions Inc. IL now owns 7,275 shares of the airline’s stock valued at $301,000 after purchasing an additional 2,000 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

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.