Southwest Airlines (NYSE:LUV) Upgraded to “Hold” at Zacks Research

Southwest Airlines (NYSE:LUV) was upgraded by stock analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Thursday,Zacks.com reports.

Other equities analysts also recently issued reports about the company. Argus cut their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Susquehanna lowered their price target on Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. UBS Group boosted their price target on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a research note on Tuesday. Barclays increased their price objective on Southwest Airlines from $56.00 to $65.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Wells Fargo & Company reduced their price objective on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a research note on Monday, March 16th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $46.36.

Southwest Airlines Stock Down 0.2%

NYSE:LUV opened at $52.00 on Thursday. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. The company has a market cap of $25.42 billion, a PE ratio of 33.55, a P/E/G ratio of 0.54 and a beta of 1.15. The company’s 50 day moving average is $42.37 and its two-hundred day moving average is $43.19.

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 analysts’ consensus estimates of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. During the same quarter last year, the company posted ($0.13) earnings per share. 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 anticipate that Southwest Airlines will post 2.93 EPS for the current year.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently added to or reduced their stakes in the business. SG Americas Securities LLC boosted its stake in shares of Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after buying an additional 3,606,255 shares during the last quarter. Nordea Investment Management AB purchased a new position in Southwest Airlines during the fourth quarter valued at approximately $31,968,000. North Dakota State Investment Board purchased a new position in Southwest Airlines during the fourth quarter valued at approximately $2,189,000. Altfest L J & Co. Inc. acquired a new position in Southwest Airlines in the fourth quarter valued at approximately $1,403,000. Finally, iSAM Funds UK Ltd acquired a new position in Southwest Airlines in the third quarter valued at approximately $1,479,000. 80.82% of the stock is 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.