Southwest Airlines (NYSE:LUV) Upgraded by Zacks Research to Hold Rating

Zacks Research upgraded shares of Southwest Airlines (NYSE:LUV) from a strong sell rating to a hold rating in a research report released on Thursday,Zacks.com reports.

A number of other equities analysts also recently weighed in on LUV. Susquehanna cut their price target on shares of Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. BMO Capital Markets lowered their price objective on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a research report on Tuesday, March 31st. UBS Group lifted their target price on Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a research report on Tuesday. Weiss Ratings cut shares of Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. Finally, Wells Fargo & Company reduced their target price on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a report on Monday, March 16th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average price target of $46.36.

Southwest Airlines Stock Performance

NYSE:LUV opened at $52.00 on Thursday. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The stock has a market cap of $25.42 billion, a PE ratio of 33.55, a price-to-earnings-growth ratio of 0.54 and a beta of 1.15. The firm’s fifty day simple moving average is $42.37 and its 200-day simple moving average is $43.19.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. The business had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business’s revenue was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts expect that Southwest Airlines will post 2.93 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Thursday, June 11th. Southwest Airlines’s payout ratio is presently 46.45%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently bought and sold shares of the business. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines during the fourth quarter valued at approximately $26,000. Entrust Financial LLC acquired a new position in Southwest Airlines in the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new stake in Southwest Airlines in the 4th quarter worth approximately $26,000. Finally, Optima Capital LLC purchased a new stake in Southwest Airlines in the 4th quarter worth approximately $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

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.