Barclays Reiterates Buy Rating on Southwest Airlines

Barclays has reiterated its buy rating on Southwest Airlines Co. (NYSE:LUV), setting a price target of $65. Analyst Brandon Oglenski made the announcement on June 25, 2026, indicating a continued positive outlook for the airline.

Other Institutional Activity in Southwest Airlines

PRIMECAP Management Co. trimmed its holdings in Southwest Airlines by 322,600 shares, now holding 47,069,495 shares valued at about $1.77 billion, a 0.7% decrease. Franklin Resources Inc. increased its stake by 4,185,878 shares, ending with 44,386,408 shares worth approximately $1.67 billion, marking a 10.4% increase. Vanguard Capital Management LLC opened a new position with 31,644,632 shares valued at $1.19 billion. Elliott Investment Management L.P. significantly reduced its stake by 20,782,500 shares, now holding 30,346,000 shares valued at $1.14 billion, a 40.6% decrease. State Street Corp also reduced its holdings by 1,702,983 shares to 29,519,791 shares, a 5.5% decrease.

Southwest Airlines Co. Stock Up 29.1%

Shares of Southwest Airlines Co. (NYSE:LUV) traded near $52.07 on Friday. The company has a market cap of $23.74 billion and a P/E ratio of 32.38. Its forward P/E is more favorable at 10.73. The stock's 52-week range is between $28.98 and $55.11, with a 50-day moving average of $41.11 and a 200-day moving average of $39.39. The airline's beta is 1.156, suggesting moderate volatility.

Recent Earnings

Southwest Airlines reported revenue of $28.88 billion with a growth of 12.8%. The company's net margin stands at 2.83%, and the return on equity is 10.06%. Earnings per share are $1.50. The next earnings report is scheduled for July 22, 2026.

Dividend

Southwest Airlines offers an annual dividend rate of $0.72, yielding 1.5%. The dividend payout ratio is 48%.

Insider Buying and Selling at Southwest Airlines Co.

On May 7, 2026, several insiders, including Christopher Reynolds and Patricia Watson, each acquired 4,108 shares of Southwest Airlines, although the price and total value weren't disclosed.

Analysts Set New Price Targets

On June 25, 2026, Barclays maintained its buy rating with a $65 price target. That same day, Evercore ISI Group maintained a hold rating with a $52 target. Earlier, on June 23, UBS maintained its buy rating, setting a $61 target. Morgan Stanley also maintained a buy rating with a $60 target on June 1, 2026. The consensus rating is hold, with a mean target price of $45.95 among 23 analysts.

About Southwest Airlines

Southwest Airlines Co., based in Dallas, Texas, operates as a major passenger airline providing scheduled air transportation services across the United States and internationally. The company, led by CEO Robert E. Jordan, employs over 73,400 people. Known for its low-cost fares and customer-friendly policies, Southwest operates a fleet of 803 Boeing 737 aircraft, serving 117 destinations.

Bottom Line

Barclays' reiteration of a buy rating for Southwest Airlines with a $65 target underscores confidence in its growth prospects. Investors often watch analyst ratings for insights, though it's important to remember that these ratings are based on past performance and expectations, not guarantees of future results.