Southwest Airlines (NYSE:LUV) Reaches New 12-Month High – What’s Next?

Shares of Southwest Airlines Co. (NYSE:LUV) reached a new 52-week high on Wednesday . The company traded as high as $54.70 and last traded at $53.19, with a volume of 1153076 shares traded. The stock had previously closed at $54.07.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Citigroup upped their price target on shares of Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. Susquehanna upped their price target on shares of Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. Evercore raised their price objective on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research report on Thursday, January 29th. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Sanford C. Bernstein upped their price objective on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a report on Thursday, November 20th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $46.92.

Southwest Airlines Stock Performance

The business’s 50-day simple moving average is $43.20 and its two-hundred day simple moving average is $36.00. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The firm has a market cap of $26.22 billion, a price-to-earnings ratio of 63.37, a P/E/G ratio of 0.38 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the prior year, the firm posted $0.56 EPS. Southwest Airlines’s quarterly revenue 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, sell-side analysts expect that Southwest Airlines Co. will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.3%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s payout ratio is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

A number of large investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership lifted its stake in shares of Southwest Airlines by 2,403.8% in the second quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after buying an additional 9,716,160 shares in the last quarter. Norges Bank purchased a new position in Southwest Airlines in the 4th quarter worth approximately $172,038,000. Ameriprise Financial Inc. boosted its holdings in shares of Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after purchasing an additional 3,753,183 shares during the last quarter. SG Americas Securities LLC grew its position in shares of Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA acquired a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $143,450,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

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.