The Goldman Sachs Group Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price target increased by stock analysts at The Goldman Sachs Group from $30.00 to $35.00 in a report issued on Thursday,Benzinga reports. The firm presently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s price objective suggests a potential downside of 30.68% from the company’s current price.

Several other research analysts have also recently issued reports on LUV. Evercore raised their price objective on Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. Citigroup lifted their price objective on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and raised their target price for the stock from $24.40 to $36.10 in a report on Friday, April 24th. Zacks Research raised shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. Finally, Weiss Ratings cut shares of Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 8th. Nine 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’s stock. Based on data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus target price of $48.43.

Southwest Airlines Stock Up 0.0%

Southwest Airlines stock traded up $0.02 during trading hours on Thursday, reaching $50.49. The stock had a trading volume of 1,180,106 shares, compared to its average volume of 8,546,798. The company has a market cap of $24.68 billion, a price-to-earnings ratio of 32.63, a PEG ratio of 0.53 and a beta of 1.12. 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 business’s 50 day moving average price is $42.93 and its 200-day moving average price is $43.47. Southwest Airlines has a 52 week low of $28.98 and a 52 week high of $55.11.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business had revenue of $7.25 billion for the quarter, compared to analysts’ expectations of $8.46 billion. During the same period last year, the business earned ($0.13) EPS. The company’s revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Sell-side analysts anticipate that Southwest Airlines will post 2.93 EPS for the current year.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the 4th quarter valued at $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines during the 4th quarter worth about $26,000. Entrust Financial LLC purchased a new stake in Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Finally, Optima Capital LLC purchased a new position in Southwest Airlines during the fourth quarter worth about $27,000. Institutional investors and hedge funds 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.