Susquehanna Cuts Southwest Airlines (NYSE:LUV) Price Target to $42.00

Southwest Airlines (NYSE:LUV) had its price target trimmed by Susquehanna from $55.00 to $42.00 in a report released on Thursday,MarketScreener reports. The brokerage currently has a neutral rating on the airline’s stock.

LUV has been the subject of a number of other research reports. Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a report on Friday, March 27th. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. Evercore boosted their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research report on Thursday, January 29th. Deutsche Bank Aktiengesellschaft upped their price objective on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Finally, Rothschild & Co Redburn raised their price objective on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, March 5th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $43.72.

Southwest Airlines Trading Up 0.1%

NYSE LUV opened at $37.66 on Thursday. Southwest Airlines has a one year low of $23.82 and a one year 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 $18.49 billion, a price-to-earnings ratio of 44.83, a price-to-earnings-growth ratio of 0.30 and a beta of 1.19. The company’s 50-day simple moving average is $45.52 and its two-hundred day simple moving average is $39.44.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share 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 company earned $0.56 EPS. The company’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. Equities analysts forecast that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Thursday, March 12th. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Trading of Southwest Airlines

A number of institutional investors have recently made changes to their positions in LUV. AQR Capital Management LLC grew its stake in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after buying an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after buying an additional 3,141 shares during the last quarter. Empowered Funds LLC boosted its holdings in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after acquiring an additional 527 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of Southwest Airlines during the second quarter worth about $211,000. Finally, J.W. Cole Advisors Inc. increased its holdings in shares of Southwest Airlines by 6.0% during the second quarter. J.W. Cole Advisors Inc. now owns 8,530 shares of the airline’s stock valued at $277,000 after acquiring an additional 481 shares in the last quarter. Institutional investors and hedge funds 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: TD Cowen trimmed its price target to $46 but kept a Buy rating, signaling some investor confidence in Southwest’s medium-term recovery. TD Cowen adjusts price target on Southwest Airlines to 46 from 56, maintains Buy rating
• Positive Sentiment: Zacks published a bullish/value-oriented note arguing LUV looks like a strong value stock for long-term investors, which can attract buyers who look past near-term fuel volatility. Here’s Why Southwest Airlines (LUV) is a Strong Value Stock
• Neutral Sentiment: Susquehanna lowered its price target to $42 and kept a Neutral rating, reflecting less conviction either way amid the fuel-driven uncertainty. Susquehanna adjusts price target on Southwest Airlines to 42 from 55, maintains Neutral rating
• Negative Sentiment: Multiple reports highlight a sharp monthly decline (≈20–22%) in LUV shares as $100+ oil/jet fuel threatens Southwest’s $4.00 EPS target — direct downward pressure on expectations and valuation. Southwest Airlines Dropped 20.89% in a Month as $104 Oil Threatens Its $4.00 EPS Target
• Negative Sentiment: Industry headlines link rising jet‑fuel costs to geopolitical tensions (Iran conflict / Trump comments), and coverage notes jet fuel spiking (reports cite big percentage increases), which raises near‑term operating-cost risk for airlines including LUV. Jet fuel prices are up 100%, oil prices keep surging, and airlines are paying the price
• Negative Sentiment: Broker moves: BMO and Raymond James cut price targets (to roughly $45), adding to selling pressure as analysts mark down near‑term earnings risk. BMO Capital Markets Cuts Southwest Airlines (NYSE:LUV) Price Target to $45.00
• Negative Sentiment: News aggregation and crypto/retail sentiment metrics show deteriorating retail sentiment (e.g., Reddit scores), which can amplify intraday selling in volatile market conditions. Southwest Airlines (LUV) Stock Tumbles Amid Soaring Jet Fuel Costs and Iran Conflict

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.