Southwest Airlines (LUV.US) Price Target and Rating 2026/2027

47,52
-2,61%
Price history for Southwest Airlines (LUV.US) – stock price at 47.52 $, August 2026
Southwest Airlines stock price – price development 2026. Updated Aug 6, 2026.
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Southwest Airlines Price Target 2026: Analysts See 9% Upside

The average price target for Southwest Airlines is $51.79. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 9,00% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is Southwest Airlines overvalued or undervalued?

Southwest Airlines is currently fairly valued with a gap of 9% relative to the price target.


The current price is $47.52, which places Southwest Airlines in the fairly valued category. The stock is considered undervalued when the price is below $46.61, and overvalued when the price exceeds $56.97.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Southwest Airlines, the fair value range lies between $46.61 and $56.97.


See the full price target analysis for Southwest Airlines →

Analyst Ratings for Southwest Airlines stock in 2026: Hold

24 analysts cover Southwest Airlines. The ratings are mixed, with 25% Buy, 45.8% Hold and 29.2% Sell. The average price target is $51.79, which gives an upside of 9% from the current price.

Consensus: Hold (3.00/5)
Strong Buy
4 (16.7%)
Buy
2 (8.3%)
Hold
11 (45.8%)
Sell
4 (16.7%)
Strong Sell
3 (12.5%)
Strong Sell Sell Hold Buy Strong Buy
3.00 out of 5 based on 24 analysts

About Southwest Airlines – Luftfartselskab

Luv.us er et flyselskab, der driver ruteflyvninger i USA og til de nærliggende internationale markeder. De tjener primært penge på at sælge billetter til deres 728 fly store flåde, som udelukkende består af Boeing 737’ere. Luv.us betjener i dag 121 destinationer, fordelt over 42 stater og ti internationale lande, blandt andet Mexico, Jamaica og Cuba. De er kendt for at holde priserne nede og for at levere høj kundetilfredshed. De har et loyalitetsprogram, de kalder Rapid Rewards. Derudover tilbyder luv.us digitale værktøjer som SWABIZ, der er et online bookingværktøj målrettet erhvervskunder. Read more about the company

Key Figures for Southwest Airlines

$ 23,8B Market cap
$ 30,1B Revenue
Luftfartselskab Industry
30.44 P/E
0.79 P/S
3.11 P/B
USA Listed on exchange
Industri Sector

What kind of stock is Southwest Airlines?

Growth stock Momentum stock

Southwest Airlines is classified as a growth stock and momentum stock. This means the stock combines several attractive traits, and strong price momentum.

Score Overview for Southwest Airlines

💰 Value Score 60/100 (High)
⭐ Quality Score 60/100 (High)
🚀 Momentum Score 75/100 (High)
📊 Total Score 65/100

⚠️ 2 red flags identified

Our analysis has identified 2 potential risk factors in Southwest Airlines that investors should be aware of.

⚠️ High debt: The debt-to-equity ratio is 226% – the company carries considerably more debt than equity, which raises the financial risk.
⚠️ Weak balance sheet (elevated risk): Altman Z2 is 0.90 – the balance sheet is measurably weaker than average. This is a risk signal based on the numbers, not a bankruptcy prediction.

📈 Valuation

Southwest Airlines trades at a P/E ratio of 30.4, which is above the market average. The forward P/E is 14.9 (51% lower), which suggests the market expects rising earnings. The P/S ratio is 0.8 (low — potentially undervalued relative to revenue). The P/B ratio is 3.1. The PEG ratio is 0.36 — below 1.0 suggests the stock is cheap relative to its growth rate.

💵 Profitability & Growth

Southwest Airlines has a profit margin of 2.8% (moderate) and an operating margin of 3.4%. Return on equity (ROE) is 11.1% — solid return on equity. Return on assets (ROA) is 2.3%. The latest quarterly earnings grew 20.5% year over year.

🏦 Financial Health

The Piotroski score is 8 out of 9 — excellent financial health. Altman Z2 is 0.90 (weak balance sheet — elevated risk). The debt-to-equity ratio (D/E) is 226.1% — high debt, which raises the risk.

🚀 Momentum & Short Interest

Short interest is 8.55% — elevated, some investors are betting on a decline.

Southwest Airlines Dividend 2026: 1.5% Dividend Yield

Dividend Key Figures for Southwest Airlines in 2026

Dividend yield
1.53%
Dividend per share
0.18 USD
Payout ratio
34.6%
Healthy
Dividend growth (6 years)
+200.0%
Avg. annual dividend (3 years)
0.66 USD

When does Southwest Airlines pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
September 3, 2026
Next dividend payment
September 24, 2026
Latest payment date
September 24, 2026

How much does Southwest Airlines pay in dividends?

Southwest Airlines pays dividends to its shareholders. The most recently paid dividend was 0.18 USD per share, which corresponds to a dividend yield of 1.53%. Over the last 6 years, the annual dividend has grown by 200.0%, which shows positive dividend growth.

The payout ratio is 34.6%, which is considered healthy and sustainable. The company balances rewarding shareholders with reinvesting in growth.

Historical Dividend Payments for Southwest Airlines

We have registered dividend payments for Southwest Airlines since 2019-12-10. In that period the stock has paid a dividend 24 times, most recently on 2026-09-03. This stock qualifies as a sporadic dividend stock, because it has paid a dividend at least once a year for the last 3 years. That makes it interesting for investors looking for occasional dividend income.

Ex-datePayment dateAmountCurrencyPeriod
2026-09-032026-09-240.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-06-112026-07-020.18USDUnknown period
2026-03-122026-04-020.18USDUnknown period
2025-12-262026-01-160.18USDUnknown period
2025-09-032025-09-240.18USDUnknown period
2025-03-122025-04-020.18USDUnknown period
2024-09-042024-09-250.18USDUnknown period
2024-06-182024-07-100.18USDUnknown period
2024-03-052024-03-270.18USDUnknown period
2023-12-202024-01-110.18USDUnknown period
2023-09-052023-09-270.18USDUnknown period
2023-06-202023-07-120.18USDUnknown period
2023-03-072023-03-290.18USDUnknown period
2023-01-092023-01-310.18USDUnknown period
2020-03-032020-03-250.18USDUnknown period
2019-12-102020-01-080.18USDUnknown period

Insider Trading in Southwest Airlines 2026: The Signal Is mostly negative

In 2026, insiders at Southwest Airlines have made 20 transactions – split into 8 purchases and 12 sales. On a net basis, insiders took 3,852,042 $ out of the stock. Active insiders include Watterson Andrew M, SARETSKY GREGG A, Gregg A Saretsky and others.

Short-Term Signal (3 months): No activity

There has been no insider trading in the last 3 months.

Long-Term Signal (all transactions): Mostly negative

Insiders have sold considerably more than they have bought. At large companies this can be due to planned sales (10b5-1 plans) and is not necessarily a negative signal.

Across the last 20 transactions: 8 purchases and 12 sales. A net 3,852,042 $ out of the stock.

Latest purchase: Watterson Andrew M bought 17,926 shares at 31 $ each on 2025-08-18. The stock has since risen 55.8%.

Latest sale: Lisa M Atherton sold 118 shares at 38 $ each on 2026-04-07.

Who is buying: Watterson Andrew M, SARETSKY GREGG A, Gregg A Saretsky, Sarah Feinberg, Feinberg Sarah and others.

Who is selling: Lisa M Atherton, Atherton Lisa M, Roach Anthony, Doxey Tom, Woods Lauren Tauscher and others.

Latest Insider Trades in Southwest Airlines (2026)

The table shows the last 20 reported insider transactions in Southwest Airlines. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-04-07 Lisa M Atherton Sell 118 38 4,478
2026-04-07 Atherton Lisa M Sell 118 38 4,478
2026-03-21 Roach Anthony Sell 2,179 39 85,874
2026-03-21 Doxey Tom Sell 11,447 39 451,126
2026-02-21 Woods Lauren Tauscher Sell 4,585 52 238,833
2026-02-21 Watterson Andrew M Sell 17,942 52 934,599
2026-02-21 Roach Anthony Sell 3,658 52 190,545
2026-02-21 Martinez Jimmy Ryan Sell 2,755 52 143,508
2026-02-21 Jordan Robert E Sell 38,742 52 2,018,071
2026-02-21 Jones Justin Sell 8,507 52 443,130

Who is buying and selling Southwest Airlines shares in 2026?

The following insiders have bought shares in Southwest Airlines: Watterson Andrew M, SARETSKY GREGG A, Gregg A Saretsky, Sarah Feinberg, Feinberg Sarah and others. In total, 966,768 $ was bought across 8 transactions. The following insiders have sold shares: Lisa M Atherton, Atherton Lisa M, Roach Anthony, Doxey Tom, Woods Lauren Tauscher and others. In total, 4,818,810 $ was sold across 12 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

Southwest Airlines Short Selling 2026: 8.6% Sold Short

High short interest: 8.6% of the free float
Short % of free float
8.6%
Assessment
High short interest
Short squeeze risk
Moderate
Data source
SEC
Updated daily
The stock has a high share of short selling. Between 5-10% of the freely traded shares are sold short, which suggests some investors are betting on falling prices. Positive surprises can lead to a moderate short squeeze.

What does this mean for you as an investor?
A short interest of 8.6% means that 8.6% of the freely traded shares in Southwest Airlines have been borrowed and sold by investors betting on falling prices.

The next potential catalyst is the earnings report on 10/21/2026. With a short interest of 8.6%, the report can trigger considerable volatility.

Data is updated daily based on official filings with the SEC.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
8.6%

When Does Southwest Airlines Report Earnings – Next Date: 10/21/2026

The next earnings report from Southwest Airlines is scheduled for October 21, 2026, after the market closes. This report covers the third quarter (Q3), which ended on September 30, 2026.



Technical Analysis of Southwest Airlines 2026 – Signal: Buy

Overall Technical Signal: Buy

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.

Technical analysis of Southwest Airlines (LUV.US) – RSI 57, MACD negative (bearish), daily candlestick chart August 2026
Southwest Airlines technical analysis – candlestick chart with RSI and MACD. Updated Aug 6, 2026.

Trend Analysis of Southwest Airlines Co

Southwest Airlines Co is in a short-term uptrend. The price of $48.79 is 3.2% above the 20-day average ($47.28). Medium term, the picture is positive: the price is 4.5% above the 50-day average ($46.67). Long term, the stock is 16.9% above the 200-day average ($41.73), which confirms a long-term uptrend.

Golden Cross: The 50-day average (46.67) is above the 200-day average (41.73), which is a classic bullish signal for Southwest Airlines Co.

Is Southwest Airlines Co overbought or oversold?

Southwest Airlines Co has an RSI of 56.6. The stock shows positive momentum in the upper part of the neutral zone. Combined with the positive trend, this supports the bullish picture.

MACD Analysis for Southwest Airlines Co

Daily MACD: MACD is negative (-0.056), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is above the signal line (-0.125) by 0.069, which suggests the negative momentum is fading – a potential trend reversal could be ahead.

Weekly MACD: MACD5 is positive (2.207), which indicates a broader bullish long-term trend. MACD5 is above the signal line (1.937) by 0.270, which confirms rising long-term momentum.

Overall MACD assessment: The daily and weekly MACD give conflicting signals. The long-term trend is bullish, but the short-term trend is bearish. Daily momentum is rising, though, which could suggest the pullback is over.

Risk Profile for Southwest Airlines Co

Southwest Airlines Co has an annual standard deviation of 44.1%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Southwest Airlines Co

Trend: Positive. The price trades above SMA50 and SMA200.

MACD trend (zero line): Daily bearish (-0.056). Weekly bullish (2.207).

MACD momentum (signal): Daily rising. Weekly rising.

RSI: 56.6 – neutral.

Technical signal: Buy

The broader trend is positive and MACD supports the picture. Consider buying with a stop-loss below the nearest support level.

Frequently Asked Questions About Southwest Airlines stock in 2026

Should you buy Southwest Airlines stock now?
Yes, the technical signal for Southwest Airlines is currently BUY. Southwest Airlines trades at $47.52 as of 8/6/2026. The overall technical signal is: Buy. The technical analysis shows the following: MACD is negative (bearish trend) at -0.056 with rising momentum (signal: -0.125); RSI is at 56.6 (neutral zone); the stock is in a short-term uptrend (price above the 20-day average); the analyst price target of $51.79 points to 9.0% upside. The stock is in a broader uptrend (above SMA50/SMA200). This is a technical observation based on current data, not investment advice.
What is the price target for Southwest Airlines stock?
The average analyst price target for Southwest Airlines is $51.79. The current price is $47.52, which gives an upside of 9.0%. Based on this, the stock is considered fairly valued. The fair value range (±10% of the price target) is between $46.61 and $56.97.
Is Southwest Airlines a dividend stock?
Yes, Southwest Airlines is a dividend stock with a dividend yield of 1.53%. The latest dividend was $0.18 per share. The latest ex-dividend date (traded without the dividend) was 9/3/2026. The payout ratio is 34.6%, which is considered sustainable. The next dividend payment is scheduled for 9/24/2026.
When does Southwest Airlines pay a dividend in 2026?
Southwest Airlines pays its next dividend on 9/24/2026. The latest dividend was $0.18 per share with an ex-dividend date of 9/3/2026. The dividend yield is 1.53%. The payout ratio of 34.6% points to a sustainable dividend with room to grow.
What is the risk of Southwest Airlines stock?
Southwest Airlines is rated as a stock with moderate risk. the annual standard deviation is 44.1%, which classifies the stock as moderate risk.
Is Southwest Airlines overvalued?
Southwest Airlines is considered fairly valued – the price is close to the analyst price target. Southwest Airlines has the following valuation ratios: a P/E ratio of 30.4 (highly valued), a P/S ratio of 0.8, a P/B ratio of 3.1. The stock trades close to the analyst price target and is considered fairly valued.
Is Southwest Airlines overbought?
No, Southwest Airlines is not overbought. RSI is at 56.6 (neutral zone). The technical indicators show: RSI is at 56.6 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 0.5% above the 20-day average (short-term uptrend). In addition, MACD is negative, but momentum is rising (possible trend reversal).
When is the next Southwest Airlines earnings report?
Southwest Airlines reports its next earnings on October 21, 2026. The stock currently trades at $47.52. With a P/E ratio of 30.4, the market will be watching closely whether earnings meet expectations.
Is Southwest Airlines shorted?
Yes, Southwest Airlines is shorted with 8.6% of the free float sold short. This is a high level of short selling, which suggests some investors are betting on falling prices. Positive surprises can lead to a moderate short squeeze. Data is updated daily based on official filings with the SEC.
Are insiders buying Southwest Airlines stock?
No, insiders are not buying Southwest Airlines shares – they are net sellers. Across the last 20 reported transactions, the split is 8 purchases and 12 sales, with a net 3,852,042 $ sold. Active sellers include Lisa M Atherton, Atherton Lisa M, Roach Anthony and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is Southwest Airlines a good stock?
Based on our total score, Southwest Airlines is rated as a good stock with a total score of 65 out of 100. The stock scores above average on value, quality and momentum – it is among the top 35% in our database. The score is made up of Value: 60/100, Quality: 60/100, Momentum: 75/100. In addition: a dividend of 1.53%; technical signal: Buy. Whether Southwest Airlines is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Southwest Airlines stock?
The outlook for Southwest Airlines based on current data: the average analyst price target is $51.79 (+9.0%); the stock is in an uptrend (above SMA50 and SMA200); the next earnings report is due on 10/21/2026, which can move the price; the P/E ratio is 30.4 (high – the market expects growth). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Southwest Airlines stock moving?
Southwest Airlines is stable right now. The technical indicators show: the price is close to the 20-day average; short interest is 8.6% (high – many are betting on a decline); insiders have mostly been selling the stock recently. For the latest context, see our technical analysis, insider section and news overview above.
How high can Southwest Airlines go?
The average analyst price target for Southwest Airlines is $51.79, which corresponds to a potential gain of 9.0% from the current price of $47.52. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Southwest Airlines fall?
We lack enough history to give a specific floor for Southwest Airlines. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Southwest Airlines do?
Luv.us er et flyselskab, der driver ruteflyvninger i USA og til de nærliggende internationale markeder. De tjener primært penge på at sælge billetter til deres 728 fly store flåde, som udelukkende består af Boeing 737’ere. Luv.us betjener i dag 121 destinationer, fordelt over ... The company belongs to the Industri sector, more specifically the Luftfartselskab industry, is headquartered in USA, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Southwest Airlines as an investment.
Did Southwest Airlines raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Southwest Airlines. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history and the news overview above.
Is Southwest Airlines making money or losing money?
Yes, Southwest Airlines is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 2.8% — which is modest. The operating margin (profit before interest and taxes) is 3.4%. At a P/E ratio of 30.4, you currently pay 30.4 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Southwest Airlines go bankrupt?
The bankruptcy risk of Southwest Airlines is rated as elevated. Altman Z2 (a model for assessing financial distress) is 0.90 — that places the company in the weak zone. This is a probability based on the numbers, not a verdict — bankruptcy is not imminent. But the balance sheet is measurably weaker than average, so watch the debt, liquidity and possible capital raises. The Piotroski score (financial health 0-9, higher is better) is 8 — which is strong. Debt relative to equity is 226% (high). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Southwest Airlines have a lot of debt?
Yes, Southwest Airlines has elevated debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 226%. For the industri sector, anything above 150% counts as elevated — that raises the financial risk, especially if interest rates rise or earnings fall. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Southwest Airlines service its debt? Can service its debt, but it weighs on the company — the interest coverage ratio (how many times earnings can cover interest payments) is 3.8x, and net debt equals 1.3 years of earnings (EBITDA).