Southwest Airlines Co. (NYSE:LUV) Receives Average Rating of “Hold” from Brokerages

Posted by Geri Gentry on Aug 31st, 2026

Shares of Southwest Airlines Co. (NYSE:LUV – Get Free Report) have earned an average rating of “Hold” from the twenty-two analysts that are presently covering the stock, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $49.0050.

Several brokerages recently commented on LUV. JPMorgan Chase & Co. cut their target price on Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Morgan Stanley lifted their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. Citigroup cut their price objective on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a research report on Friday, July 24th. BMO Capital Markets upped their price objective on shares of Southwest Airlines from $58.50 to $60.00 and gave the stock an “outperform” rating in a research report on Friday, July 24th. Finally, Weiss Ratings raised shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, August 18th.

Read Our Latest Report on LUV

Southwest Airlines Stock Up 0.2%

Shares of NYSE LUV opened at $39.70 on Monday. The company’s 50 day moving average price is $46.59 and its 200-day moving average price is $44.05. 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 52-week low of $29.26 and a 52-week high of $55.11. The company has a market capitalization of $19.42 billion, a P/E ratio of 24.36, a price-to-earnings-growth ratio of 0.36 and a beta of 1.14.

Southwest Airlines (NYSE:LUV – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the company posted $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. Equities analysts forecast that Southwest Airlines will post 3.32 earnings per share for the current year.

Southwest Airlines Announces Dividend

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

Institutional Trading of Southwest Airlines

Hedge funds have recently added to or reduced their stakes in the stock. SHP Wealth Management purchased a new position in Southwest Airlines in the fourth quarter valued at approximately $25,000. Entrust Financial LLC purchased a new position in Southwest Airlines in the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines in the fourth quarter valued at $26,000. Archer Investment Corp purchased a new position in Southwest Airlines during the 2nd quarter valued at about $32,000. Finally, Fiduciary Financial Advisors bought a new stake in Southwest Airlines during the 2nd quarter worth approximately $32,000. Institutional investors own 80.82% of the company’s stock.

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.