Raymond James Financial Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target decreased by investment analysts at Raymond James Financial from $60.00 to $54.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has an “outperform” rating on the airline’s stock. Raymond James Financial’s target price would indicate a potential upside of 33.01% from the stock’s previous close.

Several other research firms also recently issued reports on LUV. Barclays upped their price objective on shares of Southwest Airlines from $56.00 to $65.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Jefferies Financial Group increased their price target on Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a research report on Wednesday, July 1st. Zacks Research upgraded Southwest Airlines from a “strong sell” rating to a “hold” rating in a report on Thursday, June 25th. JPMorgan Chase & Co. cut their price target on Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating for the company in a report on Friday, July 24th. Finally, TD Cowen cut their price target on shares of Southwest Airlines from $53.00 to $48.00 and set a “buy” rating for the company in a report on Monday. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and a consensus price target of $49.01.

Southwest Airlines Trading Up 0.5%

Southwest Airlines stock traded up $0.22 during trading hours on Monday, hitting $40.60. The company had a trading volume of 1,529,696 shares, compared to its average volume of 7,774,999. Southwest Airlines has a 1 year low of $29.26 and a 1 year high of $55.11. The firm has a market cap of $19.86 billion, a P/E ratio of 24.87, a P/E/G ratio of 0.36 and a beta of 1.14. The company has a 50-day moving average price of $47.28 and a two-hundred day moving average price of $44.49. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. During the same quarter in the prior year, the company earned $0.43 EPS. The business’s revenue was up 16.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, sell-side analysts anticipate that Southwest Airlines will post 3.41 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of LUV. AQR Capital Management LLC boosted its stake in shares of Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after buying an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC lifted its stake in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after acquiring an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in Southwest Airlines by 47.4% during the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after acquiring an additional 98,986 shares in the last quarter. 80.82% of the stock is currently 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.