Southwest Airlines Co. (NYSE:LUV) Receives Average Rating of “Hold” from Analysts

Southwest Airlines Co. (NYSE:LUV) has earned a consensus rating of “Hold” from the twenty-two research firms that are covering the company, Marketbeat Ratings reports. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $49.58.

A number of equities analysts have recently commented on the stock. Citigroup increased their price objective on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. The Goldman Sachs Group lifted their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, July 2nd. Weiss Ratings cut Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. Susquehanna raised their price target on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. Finally, BNP Paribas Exane boosted their price target on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st.

Southwest Airlines Trading Down 1.4%

Shares of Southwest Airlines stock traded down $0.71 on Friday, hitting $48.51. 4,912,547 shares of the company’s stock traded hands, compared to its average volume of 6,357,558. The firm’s 50-day moving average price is $44.45 and its two-hundred day moving average price is $43.86. The stock has a market capitalization of $23.71 billion, a PE ratio of 31.30, a price-to-earnings-growth ratio of 0.47 and a beta of 1.12. Southwest Airlines has a one year low of $28.98 and a one year high of $55.11. 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 (NYSE:LUV) last announced its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, meeting 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 for the quarter, compared to the consensus estimate of $8.46 billion. During the same period last year, the company posted ($0.13) EPS. Southwest Airlines’s revenue for the quarter was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, research analysts expect that Southwest Airlines will post 3.17 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.5%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s dividend payout ratio (DPR) is 46.45%.

Institutional Trading of Southwest Airlines

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