Southwest Airlines (NYSE:LUV) Rating Increased to Buy at Wall Street Zen

Southwest Airlines (NYSE:LUV) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Sunday.

Other research analysts have also issued reports about the company. TD Cowen lifted their target price on Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a report on Thursday. BNP Paribas Exane raised their price objective on shares of Southwest Airlines from $24.00 to $33.00 and gave the company an “underperform” rating in a research report on Tuesday, April 21st. Raymond James Financial boosted their target price on shares of Southwest Airlines from $45.00 to $55.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Argus cut their target price on shares of Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research note on Friday, April 24th. Finally, Zacks Research raised Southwest Airlines from a “strong sell” rating to a “hold” rating in a report on Thursday, June 25th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $48.43.

Southwest Airlines Stock Down 0.1%

LUV stock opened at $50.21 on Friday. The firm’s 50-day moving average is $43.34 and its two-hundred day moving average is $43.58. The company has a market capitalization of $24.54 billion, a price-to-earnings ratio of 32.39, a price-to-earnings-growth ratio of 0.51 and a beta of 1.12. Southwest Airlines has a 52 week low of $28.98 and a 52 week high of $55.11. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. The firm had revenue of $7.25 billion for the quarter, compared to analysts’ expectations of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, analysts forecast that Southwest Airlines will post 3.02 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. CX Institutional boosted its position in Southwest Airlines by 12.1% during the second quarter. CX Institutional now owns 11,414 shares of the airline’s stock worth $587,000 after purchasing an additional 1,232 shares during the period. Western Wealth Management LLC bought a new position in shares of Southwest Airlines in the first quarter valued at approximately $134,000. Empowered Funds LLC lifted its stake in shares of Southwest Airlines by 25.4% in the first quarter. Empowered Funds LLC now owns 16,506 shares of the airline’s stock worth $620,000 after buying an additional 3,346 shares during the last quarter. FAS Wealth Partners Inc. boosted its holdings in shares of Southwest Airlines by 2.9% during the 1st quarter. FAS Wealth Partners Inc. now owns 89,224 shares of the airline’s stock worth $3,352,000 after buying an additional 2,473 shares during the period. Finally, Parallel Advisors LLC boosted its holdings in shares of Southwest Airlines by 34.5% during the 1st quarter. Parallel Advisors LLC now owns 7,245 shares of the airline’s stock worth $272,000 after buying an additional 1,859 shares during the period. 80.82% of the stock is owned by hedge funds and other institutional investors.

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.