Southwest Airlines (NYSE:LUV) Price Target Raised to $55.00

Southwest Airlines (NYSE:LUV) had its price target raised by Susquehanna from $45.00 to $55.00 in a report released on Tuesday,Benzinga reports. Susquehanna currently has a neutral rating on the airline’s stock.

A number of other analysts have also issued reports on the company. Wells Fargo & Company lifted their price target on Southwest Airlines from $45.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Friday, January 30th. TD Cowen upped their target price on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a report on Friday, January 30th. Barclays upgraded shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. BNP Paribas Exane boosted their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research report on Monday, December 8th. Finally, Jefferies Financial Group increased their price objective on shares of Southwest Airlines from $45.00 to $48.00 and gave the company a “hold” rating in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $45.76.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $52.48 on Tuesday. The stock has a market capitalization of $27.14 billion, a P/E ratio of 62.48, a P/E/G ratio of 0.37 and a beta of 1.15. The company’s fifty day moving average price is $42.07 and its 200 day moving average price is $35.61. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $52.97.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same quarter last year, the business earned $0.56 earnings per share. The company’s revenue for the quarter was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, equities research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be given a $0.18 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 1.4%. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Trading of Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the business. North Dakota State Investment Board acquired a new stake in shares of Southwest Airlines during the fourth quarter valued at about $2,189,000. iA Global Asset Management Inc. purchased a new position in shares of Southwest Airlines during the 4th quarter worth approximately $159,000. Canada Post Corp Registered Pension Plan boosted its position in shares of Southwest Airlines by 29.5% during the 4th quarter. Canada Post Corp Registered Pension Plan now owns 12,232 shares of the airline’s stock worth $506,000 after purchasing an additional 2,790 shares during the period. Qsemble Capital Management LP acquired a new stake in Southwest Airlines in the 4th quarter valued at approximately $4,295,000. Finally, AlphaCore Capital LLC raised its position in Southwest Airlines by 17.8% in the fourth quarter. AlphaCore Capital LLC now owns 13,971 shares of the airline’s stock valued at $577,000 after purchasing an additional 2,107 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Board declared a quarterly cash dividend of $0.18 per share (record Mar 12, payable Apr 2), implying a ~1.4% yield — a direct cash return to shareholders that can support sentiment. SOUTHWEST AIRLINES DECLARES 188th QUARTERLY DIVIDEND
• Positive Sentiment: UBS published a bullish forecast for LUV suggesting strong price appreciation potential, which can attract buyers and lift sentiment. UBS Group Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock
• Positive Sentiment: An analyst price target was raised (reported increase to $46.09), signaling improving analyst views even if the target remains below some recent trade levels — can be supportive of near‑term sentiment. Southwest Airlines (LUV) price target increased by 10.67% to 46.09
• Positive Sentiment: Zacks included LUV in a list of stocks with relative price strength, highlighting momentum that can draw momentum-focused funds and traders. Looking for Leaders? 5 Stocks With Relative Price Strength
• Positive Sentiment: Coverage pieces note optimism ahead of upcoming earnings, suggesting some investors expect continued operational improvement or upside to guidance. Some May Be Optimistic About Southwest Airlines’ (NYSE:LUV) Earnings
• Neutral Sentiment: Analysts’ consensus rating remains a “Hold,” indicating mixed views: some analysts are bullish while the overall consensus is cautious. Southwest Airlines Co. (NYSE:LUV) Receives Consensus Rating of “Hold” from Analysts

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.