TD Cowen Cuts Southwest Airlines (NYSE:LUV) Price Target to $48.00

Posted by Stanley Muller on Aug 27th, 2026

Southwest Airlines (NYSE:LUV – Free Report) had its target price decreased by TD Cowen from $53.00 to $48.00 in a research report sent to investors on Monday,Benzinga reports. TD Cowen currently has a buy rating on the airline’s stock.

A number of other research firms have also recently weighed in on LUV. Morgan Stanley lifted their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Wells Fargo & Company lifted their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. Bank of America upped their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a report on Wednesday, July 1st. The Goldman Sachs Group increased their price target on Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research report on Thursday, July 2nd. Finally, UBS Group upped their target price on Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $49.01.

View Our Latest Research Report on Southwest Airlines

Southwest Airlines Price Performance

NYSE:LUV opened at $40.70 on Monday. The firm’s fifty day moving average is $46.92 and its two-hundred day moving average is $44.25. The firm has a market cap of $19.91 billion, a price-to-earnings ratio of 24.97, a PEG ratio of 0.37 and a beta of 1.14. 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 has a one year low of $29.26 and a one year high of $55.11.

Southwest Airlines (NYSE:LUV – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating 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 during the quarter, compared to analyst estimates of $8.58 billion. During the same quarter last year, the business posted $0.43 EPS. The company’s revenue was up 16.4% on a year-over-year basis. 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. Research analysts expect that Southwest Airlines will post 3.32 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is 44.17%.

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently modified their holdings of the business. MCF Advisors LLC boosted its stake 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 buying an additional 203 shares during the period. World Investment Advisors increased its stake 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 acquiring an additional 210 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in shares of Southwest Airlines by 7.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after acquiring an additional 213 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Southwest Airlines by 1.5% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after acquiring an additional 235 shares in the last quarter. Finally, Greenleaf Trust raised its holdings in shares of Southwest Airlines by 4.0% during the second quarter. Greenleaf Trust now owns 8,015 shares of the airline’s stock worth $412,000 after acquiring an additional 311 shares in the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

About Southwest Airlines

(Get Free Report)

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.