Jefferies Financial Group Cuts Southwest Airlines (NYSE:LUV) Price Target to $41.00

Southwest Airlines (NYSE:LUV) had its price target reduced by research analysts at Jefferies Financial Group from $48.00 to $41.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a “hold” rating on the airline’s stock. Jefferies Financial Group’s price target indicates a potential upside of 4.68% from the stock’s current price.

A number of other research firms also recently weighed in on LUV. Wall Street Zen upgraded Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. JPMorgan Chase & Co. upgraded Southwest Airlines from an “underweight” rating to an “overweight” rating and increased their price objective for the company from $36.00 to $60.00 in a research report on Friday, January 9th. Susquehanna boosted their target price on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. Rothschild & Co Redburn upped their target price on Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a research note on Thursday, March 5th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus target price of $47.34.

Southwest Airlines Price Performance

Southwest Airlines stock traded down $2.68 during mid-day trading on Thursday, hitting $39.17. 4,911,559 shares of the company traded hands, compared to its average volume of 10,499,566. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11. The stock has a market cap of $19.24 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 0.30 and a beta of 1.10. The stock has a fifty day moving average price of $46.78 and a 200-day moving average price of $38.62.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter last year, the company posted $0.56 EPS. The business’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, equities analysts predict that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds and other institutional investors have recently modified their holdings of the stock. SHP Wealth Management bought a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new position in shares of Southwest Airlines in the 4th quarter worth about $26,000. Entrust Financial LLC purchased a new position in Southwest Airlines during the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC bought a new stake in Southwest Airlines during the fourth quarter worth about $26,000. Finally, Optima Capital LLC purchased a new stake in Southwest Airlines in the fourth quarter worth about $27,000. 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.