Southwest Airlines (NYSE:LUV) Price Target Raised to $55.00

Southwest Airlines (NYSE:LUV) had its price objective raised by analysts at Susquehanna from $44.00 to $55.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a “neutral” rating on the airline’s stock. Susquehanna’s target price would suggest a potential upside of 8.25% from the company’s current price.

A number of other research analysts also recently weighed in on the stock. TD Cowen increased their target price on shares of Southwest Airlines from $47.00 to $53.00 and gave the company a “buy” rating in a research report on Thursday, July 2nd. Zacks Research upgraded Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Sunday. The Goldman Sachs Group raised their target price on Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research report on Thursday, July 2nd. Finally, UBS Group boosted their target price on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, Southwest Airlines currently has an average rating of “Hold” and an average target price of $49.58.

Southwest Airlines Trading Up 1.1%

Shares of Southwest Airlines stock opened at $50.81 on Tuesday. The firm has a market cap of $24.83 billion, a PE ratio of 32.78, a P/E/G ratio of 0.51 and a beta of 1.12. Southwest Airlines has a 1 year low of $28.98 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The stock has a fifty day moving average price of $43.34 and a 200-day moving average price of $43.59.

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of LUV. AQR Capital Management LLC lifted its position in shares of Southwest Airlines by 100.6% during 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position 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 valued at $2,050,000 after purchasing an additional 3,141 shares in the last quarter. Empowered Funds LLC raised its stake in shares of Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after purchasing an additional 527 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Southwest Airlines by 73.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after purchasing an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in Southwest Airlines by 47.4% in the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after purchasing an additional 98,986 shares during the period. 80.82% of the stock is currently 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.