Southwest Airlines (NYSE:LUV) Given New $50.00 Price Target at Wells Fargo & Company

Southwest Airlines (NYSE:LUV) had its price target hoisted by Wells Fargo & Company from $45.00 to $50.00 in a report released on Friday,Benzinga reports. The firm currently has an equal weight rating on the airline’s stock.

A number of other equities analysts also recently commented on the company. Deutsche Bank Aktiengesellschaft boosted their price objective on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Wall Street Zen raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. JPMorgan Chase & Co. upgraded Southwest Airlines from an “underweight” rating to an “overweight” rating and boosted their price objective for the company from $36.00 to $60.00 in a research note on Friday, January 9th. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Seven investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $44.76.

Southwest Airlines Trading Down 2.0%

Shares of LUV opened at $47.51 on Friday. The firm has a 50-day moving average price of $40.71 and a 200 day moving average price of $35.21. The firm has a market capitalization of $24.57 billion, a P/E ratio of 56.56, a P/E/G ratio of 0.44 and a beta of 1.16. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12-month low of $23.82 and a 12-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. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same period last year, the company earned $0.56 EPS. The company’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Sell-side analysts forecast that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were issued a dividend of $0.18 per share. The ex-dividend date was Friday, December 26th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in LUV. Elevation Point Wealth Partners LLC purchased a new position in shares of Southwest Airlines in the 2nd quarter valued at $25,000. GHP Investment Advisors Inc. purchased a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Corsicana & Co. bought a new position in Southwest Airlines during the 3rd quarter valued at $27,000. Quent Capital LLC bought a new position in shares of Southwest Airlines during the third quarter worth about $27,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the fourth quarter valued at approximately $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

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

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.