Southwest Airlines (NYSE:LUV) Price Target Raised to $54.00

Southwest Airlines (NYSE:LUV) had its price objective increased by UBS Group from $52.00 to $54.00 in a research report report published on Friday,Benzinga reports. The brokerage currently has a buy rating on the airline’s stock.

Other analysts have also issued reports about the company. JPMorgan Chase & Co. dropped their price target on Southwest Airlines from $59.00 to $58.00 and set an “overweight” rating on the stock in a report on Friday. The Goldman Sachs Group upped their price objective on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, July 2nd. BMO Capital Markets reduced their price objective on Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating for the company in a research note on Monday, September 28th. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. Finally, Citigroup lowered their target price on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a research note on Friday, July 24th. Ten investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $47.45.

Southwest Airlines Stock Down 0.0%

Shares of NYSE:LUV opened at $41.74 on Friday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.40 and a current ratio of 0.47. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11. The business’s 50 day simple moving average is $40.57 and its two-hundred day simple moving average is $42.92. The firm has a market cap of $20.44 billion, a P/E ratio of 20.07, a PEG ratio of 1.19 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The company had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. During the same quarter in the prior year, the business posted $0.11 EPS. The firm’s revenue was up 21.2% compared to the same quarter last year. As a group, research analysts forecast that Southwest Airlines will post 2.69 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s payout ratio is 34.62%.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds have recently made changes to their positions in the business. Primecap Management Co. CA bought a new stake in Southwest Airlines during the second quarter worth approximately $2,509,179,000. BlackRock Inc. purchased a new stake in Southwest Airlines during the second quarter valued at approximately $1,538,382,000. Bank of New York Mellon Corp bought a new stake in shares of Southwest Airlines in the 2nd quarter valued at approximately $234,872,000. Hsbc Holdings PLC bought a new stake in shares of Southwest Airlines in the 2nd quarter valued at approximately $46,295,000. Finally, Legal & General Group Plc purchased a new position in shares of Southwest Airlines in the 2nd quarter worth approximately $38,069,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest reported third-quarter adjusted earnings of $0.66 per share, ahead of the roughly $0.57 consensus, while revenue rose 21.2% year over year to a record $8.42 billion. Higher fares, strong demand and a 21.6% increase in revenue per available seat mile helped expand margins despite higher fuel expenses. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Management indicated that travel demand remains constructive and forecast fourth-quarter unit revenue growth of approximately 19% to 21%, supporting optimism that Southwest’s pricing and commercial initiatives are gaining traction. Southwest Airlines Gains After Q3 Earnings Beat and Record Revenue
• Positive Sentiment: UBS raised its price target from $52 to $54 and assigned a Buy rating, while JPMorgan maintained an Overweight rating and still sees substantial upside with a $58 target. UBS Southwest Airlines Rating
• Neutral Sentiment: Analyst sentiment remains mixed: Susquehanna reduced its target to $43, and Wells Fargo initiated a Hold rating, suggesting that much of the earnings improvement may already be reflected in the shares.
• Negative Sentiment: Southwest lowered its fourth-quarter 2026 adjusted EPS outlook to $0.55-$0.80, below the $0.88 consensus, and set full-year EPS guidance at $2.60-$2.85 versus an $2.85 estimate. Southwest Cuts Outlook as US Airlines Battle Fuel Costs
• Negative Sentiment: Fuel costs increased by about $821 million, and management is planning for elevated jet-fuel prices to persist into 2027. Industry-wide pressure to raise fares could support revenue but risks weakening demand and profitability. US Airlines Favor Higher Fares Over Fuller Planes

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.