Southwest Airlines (NYSE:LUV) Price Target Raised to $53.00 at UBS Group

Southwest Airlines (NYSE:LUV) had its price target lifted by equities research analysts at UBS Group from $49.00 to $53.00 in a report released on Tuesday,MarketScreener reports. The brokerage currently has a “buy” rating on the airline’s stock. UBS Group’s price objective would indicate a potential upside of 25.95% from the company’s previous close.

LUV has been the subject of several other research reports. Raymond James Financial increased their target price on Southwest Airlines from $45.00 to $55.00 and gave the company an “outperform” rating in a research note on Friday, April 24th. Bank of America cut their price target on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a report on Wednesday, April 1st. BNP Paribas Exane increased their price objective on Southwest Airlines from $24.00 to $33.00 and gave the company an “underperform” rating in a research report on Tuesday, April 21st. Seaport Research Partners raised their price objective on shares of Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Finally, Susquehanna cut their target price on shares of Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $43.96.

Southwest Airlines Stock Performance

Shares of NYSE LUV traded up $1.22 during trading hours on Tuesday, hitting $42.08. 768,816 shares of the stock were exchanged, compared to its average volume of 8,972,438. Southwest Airlines has a one year low of $28.98 and a one year high of $55.11. The company’s 50 day moving average is $39.52 and its 200 day moving average is $41.28. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The firm has a market capitalization of $20.57 billion, a P/E ratio of 27.15, a P/E/G ratio of 0.45 and a beta of 1.12.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The firm had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter last year, the firm posted ($0.13) EPS. The business’s quarterly revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, research analysts expect that Southwest Airlines will post 2.76 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank bought a new stake in shares of Southwest Airlines in the 4th quarter valued at approximately $172,038,000. Ameriprise Financial Inc. boosted its stake in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC grew its position in 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 acquiring an additional 3,606,255 shares during the period. Massachusetts Financial Services Co. MA bought a new stake in Southwest Airlines in the fourth quarter valued at $143,450,000. Finally, Franklin Resources Inc. raised its stake in Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. 80.82% of the stock is owned by institutional investors.

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.