Southwest Airlines Co. (NYSE:LUV) Given Average Recommendation of “Hold” by Brokerages

Shares of Southwest Airlines Co. (NYSE:LUV) have been given a consensus rating of “Hold” by the twenty-two brokerages that are covering the firm, MarketBeat Ratings reports. Five investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and nine have issued a buy recommendation on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $44.2050.

LUV has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Saturday. BMO Capital Markets reduced their price target on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 31st. Evercore boosted their price target on shares of Southwest Airlines from $43.00 to $44.00 in a research report on Friday, April 24th. Susquehanna reduced their price target on shares of Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating on the stock in a research report on Thursday, April 2nd. Finally, JPMorgan Chase & Co. reduced their price target on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors have recently modified their holdings of LUV. AQR Capital Management LLC raised its stake in shares of Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after acquiring an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of 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 worth $2,050,000 after acquiring an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its stake in shares of 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 during the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after acquiring an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Southwest Airlines by 47.4% in the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after acquiring an additional 98,986 shares during the last quarter. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Price Performance

NYSE:LUV opened at $43.16 on Wednesday. The firm has a market cap of $21.09 billion, a PE ratio of 27.84, a price-to-earnings-growth ratio of 0.45 and a beta of 1.15. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The company’s 50-day moving average price is $40.08 and its two-hundred day moving average price is $42.06.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, meeting analysts’ consensus estimates of $0.45. The firm had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, equities analysts anticipate that Southwest Airlines will post 2.81 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be paid a $0.18 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. Southwest Airlines’s payout ratio is currently 46.45%.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Southwest announced an interline partnership with Singapore Airlines, which should make it easier for travelers to book single-ticket itineraries and could support customer reach and revenue opportunities. Southwest Airlines Begins Interline Partnership With Singapore Airlines
• Positive Sentiment: The company also launched its “Week of WOW” fare sale, offering discounts on flights and travel packages that could help stimulate bookings and keep demand healthy. Say Wow to Discount Travel: Southwest Airlines Delivers Week of Deals on Flights, Hotels, Cars, and Vacations
• Positive Sentiment: Southwest was highlighted as a top-ranked value stock, which may attract value-focused investors looking for relatively attractive fundamentals. Southwest Airlines (LUV) Is a Top-Ranked Value Stock: Should You Buy?
• Positive Sentiment: Southwest reportedly reduced its share count in Q1 through repurchases, which can support earnings per share over time. These 3 Stocks Lowered Their Share Counts Drastically in Q1
• Neutral Sentiment: Industry commentary suggests the airline product gap may widen as stronger carriers keep investing while weaker rivals struggle, which is more of a long-term competitive backdrop than an immediate Southwest-specific catalyst. Fuel Price Shock to Widen Product Gap Between US Airlines
• Negative Sentiment: The IATA sharply cut its 2026 airline profit forecast as oil prices rise, reinforcing concerns that higher fuel costs could squeeze margins for Southwest and peers. 3 Airline Stocks to Watch Amid IATA’s Subdued 2026 Profit Forecast
• Negative Sentiment: Reuters also reported that U.S. airline fuel costs jumped sharply in April, underscoring the near-term earnings pressure from elevated jet fuel prices. US Airlines Fuel Costs Soared in April to $6.5 Billion

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.