Zacks Research Downgrades Southwest Airlines (NYSE:LUV) to Strong Sell

Southwest Airlines (NYSE:LUV) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday,Zacks.com reports.

Other analysts have also recently issued reports about the company. The Goldman Sachs Group reduced their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research note on Wednesday, April 1st. JPMorgan Chase & Co. dropped their target price on Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Citigroup dropped their target price on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating on the stock in a report on Friday, March 20th. Argus dropped their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a report on Friday, April 24th. Finally, Seaport Research Partners increased their target price on Southwest Airlines from $57.00 to $58.00 in a report on Thursday, January 29th. Nine equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $43.96.

Southwest Airlines Stock Down 1.0%

Shares of NYSE LUV opened at $43.25 on Wednesday. The stock has a market cap of $21.14 billion, a P/E ratio of 27.91, a PEG ratio of 0.48 and a beta of 1.12. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. Southwest Airlines has a 12-month low of $28.98 and a 12-month high of $55.11. The business’s fifty day simple moving average is $39.70 and its 200-day simple moving average is $41.52.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. The business had revenue of $7.25 billion for the quarter, compared to analysts’ expectations of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period last year, the firm earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, equities analysts predict that Southwest Airlines will post 2.76 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of LUV. MCF Advisors LLC grew its holdings in Southwest Airlines by 28.5% during the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock worth $38,000 after acquiring an additional 203 shares during the period. World Investment Advisors grew its holdings in Southwest Airlines by 1.0% during the 4th 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 period. Parkside Financial Bank & Trust grew its holdings in Southwest Airlines by 7.5% during the 4th 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 period. Annis Gardner Whiting Capital Advisors LLC grew its holdings in Southwest Airlines by 1.5% during the 4th 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 during the period. Finally, Transcend Capital Advisors LLC grew its holdings in Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after acquiring an additional 272 shares during the period. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.