Citigroup Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target reduced by stock analysts at Citigroup from $55.00 to $50.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a “neutral” rating on the airline’s stock. Citigroup’s price target points to a potential upside of 10.64% from the stock’s previous close.

A number of other equities analysts have also recently issued reports on the company. JPMorgan Chase & Co. lowered their target price on Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. Morgan Stanley boosted their price target on Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Weiss Ratings raised Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Finally, Bank of America raised their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a report on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating, nine have issued 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 $49.55.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $45.19 on Friday. The company’s 50 day moving average price is $46.01 and its two-hundred day moving average price is $44.29. The firm has a market capitalization of $22.09 billion, a P/E ratio of 27.72, a P/E/G ratio of 0.37 and a beta of 1.12. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.41.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period in the prior year, the business earned $0.43 earnings per share. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, equities analysts forecast that Southwest Airlines will post 3.59 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently made changes to their positions in the stock. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new stake in Southwest Airlines during the 4th quarter valued at approximately $26,000. Entrust Financial LLC bought a new position in Southwest Airlines during the 4th quarter worth approximately $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines during the 4th quarter worth approximately $26,000. Finally, Optima Capital LLC acquired a new position in shares of Southwest Airlines in the 4th quarter worth approximately $27,000. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

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.