Southwest Airlines Co. (NYSE:LUV) Stock Now Rated “Hold” by Sell-Side Brokerages

Southwest Airlines Co. (NYSE:LUV) has been given a consensus recommendation of “Hold” by the twenty-two brokerages that are currently covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and nine have issued a buy recommendation on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $47.41.

A number of research analysts have issued reports on LUV shares. Barclays cut their price objective on Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating for the company in a report on Friday, September 11th. Susquehanna reduced their target price on shares of Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. Evercore upped their target price on shares of Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Wall Street Zen cut shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. Finally, TD Cowen dropped their target price on shares of Southwest Airlines from $48.00 to $47.00 and set a “buy” rating for the company in a research report on Friday, October 2nd.

Institutional Trading of Southwest Airlines

Large investors have recently added to or reduced their stakes in the company. SHP Wealth Management bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $25,000. Scarborough Advisors LLC acquired a new position in shares of Southwest Airlines in the 1st quarter worth approximately $28,000. Fiduciary Financial Advisors acquired a new position in shares of Southwest Airlines in the 2nd quarter worth approximately $32,000. Archer Investment Corp acquired a new position in shares of Southwest Airlines in the 2nd quarter worth approximately $32,000. Finally, MidFirst Bank bought a new stake in Southwest Airlines during the 4th quarter worth approximately $39,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $39.49 on Tuesday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The company has a market capitalization of $19.32 billion, a PE ratio of 24.23, a price-to-earnings-growth ratio of 1.02 and a beta of 1.16. Southwest Airlines has a one year low of $29.26 and a one year high of $55.11. The business has a 50 day simple moving average of $41.02 and a 200 day simple moving average of $42.78.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%. The business had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same quarter in the previous year, the firm earned $0.43 EPS. Southwest Airlines’s quarterly revenue was up 16.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, sell-side analysts forecast that Southwest Airlines will post 2.98 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were given a $0.18 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. Southwest Airlines’s payout ratio is 44.17%.

Southwest Airlines News Roundup

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: UBS maintains a Buy rating. UBS lowered its price target modestly to $52 from $53, but the new target still implies substantial potential upside from recent trading levels. The continued Buy rating signals confidence in Southwest’s longer-term recovery and earnings outlook. UBS Adjusts Southwest Airlines Price Target
• Positive Sentiment: Rapid Rewards is being repositioned to generate more high-value customer revenue. Southwest plans to replace its existing A-List structure with Silver, Gold and Platinum tiers, while adding expanded redemption options, premium benefits, lounges and Starlink Wi-Fi. The changes could improve customer loyalty, attract affluent travelers and increase ancillary revenue, although the financial benefit will take time to develop. Southwest Revamps Loyalty Program
• Neutral Sentiment: Third-quarter earnings are the next major catalyst. Analysts are examining operating metrics beyond revenue and earnings, including the quality of bookings, traffic and revenue performance. Southwest’s previous quarter beat expectations, but investors are now looking for evidence that its full-year 2026 guidance can be sustained and that earnings estimates are not revised lower. Southwest Q3 Earnings Analyst Insights
• Negative Sentiment: Cost pressures and the reduced UBS target are weighing on sentiment. Southwest’s upcoming results face pressure from higher fuel and labor costs. Although strong bookings and revenue growth may provide support, investors remain concerned that rising expenses could limit margin improvement and trigger earnings-estimate revisions. UBS’s target-price reduction, despite retaining a Buy rating, reinforces the near-term caution. Southwest Airlines Q3 Earnings Preview

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.