Southwest Airlines (NYSE:LUV) Rating Lowered to “Hold” at Wall Street Zen

Southwest Airlines (NYSE:LUV) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

LUV has been the topic of a number of other reports. BNP Paribas Exane lifted their target price on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st. Wells Fargo & Company cut their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a report on Monday, March 16th. Bank of America reduced their price objective on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a research report on Wednesday, April 1st. Zacks Research lowered Southwest Airlines from a “hold” rating to a “strong sell” rating in a report on Wednesday, May 27th. Finally, UBS Group boosted their price objective on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a research report on Tuesday. Nine investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $46.36.

Southwest Airlines Price Performance

Shares of Southwest Airlines stock opened at $52.00 on Friday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The firm has a fifty day moving average price of $42.37 and a two-hundred day moving average price of $43.19. The company has a market cap of $25.42 billion, a PE ratio of 33.55, a price-to-earnings-growth ratio of 0.54 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same period last year, the business posted ($0.13) EPS. The business’s quarterly revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts expect that Southwest Airlines will post 2.93 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the stock. MCF Advisors LLC boosted its stake in Southwest Airlines by 28.5% during the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after buying an additional 203 shares during the period. World Investment Advisors increased its stake in Southwest Airlines by 1.0% in the 4th quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after acquiring an additional 210 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after acquiring an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after acquiring an additional 235 shares in the last quarter. Finally, Transcend Capital Advisors LLC raised its holdings in shares of Southwest Airlines by 4.2% in the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock valued at $278,000 after acquiring an additional 272 shares in the last quarter. Institutional investors own 80.82% of the company’s stock.

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.