Southwest Airlines (NYSE:LUV) Stock Gets Price Target Reduction from Susquehanna

Posted by Francis Steltz on Oct 10th, 2026

Southwest Airlines (NYSE:LUV – Free Report) had its target price reduced by Susquehanna from $50.00 to $45.00 in a report issued on Wednesday morning,Benzinga reports. They currently have a neutral rating on the airline’s stock.

A number of other research analysts have also recently commented on the stock. Jefferies Financial Group upped their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research report on Wednesday, July 1st. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and lifted their price target for the company from $35.00 to $40.00 in a research report on Friday, September 18th. Weiss Ratings raised shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 18th. Morgan Stanley upped their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Finally, Evercore increased their price objective on shares of Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. Nine research 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. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $47.45.

Check Out Our Latest Stock Report on Southwest Airlines

Southwest Airlines Trading Up 0.8%

Shares of Southwest Airlines stock opened at $41.70 on Wednesday. The stock has a 50 day moving average of $41.77 and a 200 day moving average of $42.75. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The firm has a market capitalization of $20.40 billion, a price-to-earnings ratio of 25.58, a PEG ratio of 0.41 and a beta of 1.16. Southwest Airlines has a fifty-two week low of $29.26 and a fifty-two week high of $55.11.

Southwest Airlines (NYSE:LUV – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. The company had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%. The company’s revenue for the quarter was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.43 earnings per share. 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. As a group, research analysts predict that Southwest Airlines will post 3.07 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm 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 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is currently 44.17%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in LUV. Primecap Management Co. CA acquired a new stake in Southwest Airlines during the 2nd quarter worth approximately $2,509,179,000. BlackRock Inc. acquired a new position in shares of Southwest Airlines in the second quarter worth $1,538,382,000. Bank of New York Mellon Corp purchased a new stake in shares of Southwest Airlines during the second quarter worth $234,872,000. Dimensional Fund Advisors LP increased its position in shares of Southwest Airlines by 2.1% during the first quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline’s stock worth $216,472,000 after acquiring an additional 117,833 shares during the period. Finally, Capitolis Liquid Global Markets LLC raised its stake in shares of Southwest Airlines by 51.4% in the fourth quarter. Capitolis Liquid Global Markets LLC now owns 3,443,500 shares of the airline’s stock valued at $142,320,000 after acquiring an additional 1,169,150 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

Positive Sentiment: Southwest is reportedly leaning toward Boeing 787 Dreamliners as its first widebody aircraft, potentially enabling long-haul international service and expanding the airline beyond its traditional domestic, low-cost model. The move could create new revenue opportunities, although it would also require significant investment and operational execution. Reuters article on Southwest’s Boeing 787 plans
Positive Sentiment: Zacks Research modestly raised its EPS estimates across 2026-2028, including a $3.31 forecast for fiscal 2026 versus a $3.16 consensus estimate, suggesting some analysts see longer-term earnings improvement despite current pressures. However, Zacks still rates the stock “Strong Sell.” MarketBeat analyst estimate report
Neutral Sentiment: Southwest continues investing in digital engagement, including an AI booking plugin and a Rapid Rewards marketing campaign intended to increase customer interaction and loyalty. The initiatives could support bookings over time, but their financial impact remains unproven. Marketing Dive article on Southwest’s rewards campaign
Negative Sentiment: A widespread technology outage temporarily grounded Southwest flights and forced employees to use manual check-in procedures, creating long lines and potential disruption costs. The incident may renew concerns about operational reliability and IT resilience. New York Post article on Southwest’s IT outage
Negative Sentiment: Higher fuel prices and slower planned capacity growth have prompted Southwest to reduce third-quarter and full-year earnings guidance. The combination threatens margins and revenue growth, while valuation-focused commentary questions whether the stock price adequately reflects future cash generation. Yahoo Finance article on Southwest’s guidance reduction
Negative Sentiment: Zacks Research downgraded Southwest from “Hold” to “Strong Sell” and identified it as its “Bear of the Day.” Susquehanna’s new $45 price target provides some upside relative to the current level, but the conflicting ratings underscore investor uncertainty. Zacks Southwest bearish analysis

About Southwest Airlines

(Get Free Report)

Southwest Airlines Co is a U.S. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.