Southwest Airlines (NYSE:LUV) Price Target Raised to $32.00

Southwest Airlines (NYSE:LUV) had its target price upped by The Goldman Sachs Group from $29.00 to $32.00 in a research report report published on Friday,Benzinga reports. They currently have a sell rating on the airline’s stock.

A number of other equities research analysts have also recently weighed in on LUV. Citigroup lifted their price objective on shares of Southwest Airlines from $38.00 to $44.00 and gave the company a “neutral” rating in a research note on Wednesday, January 7th. JPMorgan Chase & Co. upgraded shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and boosted their price target for the stock from $36.00 to $60.00 in a research report on Friday, January 9th. TD Cowen upped their price target on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday. UBS Group raised their price objective on shares of Southwest Airlines from $43.00 to $45.00 and gave the company a “neutral” rating in a research note on Tuesday, January 6th. Finally, Morgan Stanley upped their target price on Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday. Seven analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $44.76.

Southwest Airlines Stock Performance

LUV opened at $47.51 on Friday. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. The business’s 50 day moving average is $40.71 and its 200-day moving average is $35.18. The stock has a market cap of $24.57 billion, a PE ratio of 56.56, a price-to-earnings-growth ratio of 0.37 and a beta of 1.15. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $49.85.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business’s revenue for the quarter was up 7.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were issued a $0.18 dividend. The ex-dividend date of this dividend was Friday, December 26th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is currently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC raised 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 valued at $1,303,000 after purchasing an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Southwest Airlines by 5.4% during 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 in the last quarter. Empowered Funds LLC raised its position in Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after buying an additional 527 shares during the period. Janney Montgomery Scott LLC raised its position in Southwest Airlines by 11.0% during the second quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock valued at $373,000 after buying an additional 1,136 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. lifted its stake in Southwest Airlines by 3.0% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 65,558 shares of the airline’s stock worth $2,127,000 after acquiring an additional 1,933 shares in the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

Southwest Airlines Company Profile

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.