JPMorgan Chase & Co. Has Lowered Expectations for Southwest Gas (NYSE:SWX) Stock Price

Key Points

• JPMorgan lowered Southwest Gas’s price target from $102 to $101 while maintaining an “overweight” rating, implying roughly 14.15% upside from the prior close.
• Analyst sentiment remains favorable overall: seven analysts rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $101.25.
• Southwest Gas shares rose 2.4% to $88.48, while the company reported quarterly EPS of $0.45 in line with estimates but revenue of $358.15 million, down 9.6% year over year and below expectations.

Southwest Gas (NYSE:SWX - Get Free Report) had its price objective lowered by analysts at JPMorgan Chase & Co. from $102.00 to $101.00 in a research note issued on Tuesday, Benzinga reports. The firm presently has an "overweight" rating on the utilities provider's stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 14.15% from the company's previous close.

A number of other equities analysts also recently commented on the stock. Scotiabank initiated coverage on shares of Southwest Gas in a research note on Tuesday, September 29th. They set a "sector outperform" rating and a $95.00 target price for the company. Wells Fargo & Company raised their price target on Southwest Gas from $105.00 to $107.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Jefferies Financial Group restated a "buy" rating and issued a $106.00 price target on shares of Southwest Gas in a research note on Monday, October 5th. Mizuho set a $103.00 price target on Southwest Gas in a report on Wednesday, August 5th. Finally, Wall Street Zen cut Southwest Gas from a "hold" rating to a "sell" rating in a research report on Sunday, October 4th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $101.25.

Southwest Gas Stock Up 2.4%

NYSE SWX traded up $2.09 on Tuesday, hitting $88.48. 93,119 shares of the stock were exchanged, compared to its average volume of 584,713. The company has a quick ratio of 0.99, a current ratio of 1.12 and a debt-to-equity ratio of 0.83. Southwest Gas has a fifty-two week low of $76.99 and a fifty-two week high of $94.46. The company has a market cap of $6.41 billion, a PE ratio of 11.54, a PEG ratio of 1.84 and a beta of 0.57. The company has a 50-day moving average price of $86.83 and a 200-day moving average price of $88.85.

Southwest Gas (NYSE:SWX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The utilities provider reported $0.45 EPS for the quarter, meeting analysts' consensus estimates of $0.45. Southwest Gas had a net margin of 31.85% and a return on equity of 6.79%. The company had revenue of $358.15 million for the quarter, compared to the consensus estimate of $416.20 million. During the same period in the prior year, the firm posted ($0.18) EPS. The company's quarterly revenue was down 9.6% compared to the same quarter last year. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS. Sell-side analysts anticipate that Southwest Gas will post 4.27 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Julie Williams sold 2,500 shares of the business's stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $81.81, for a total transaction of $204,525.00. Following the completion of the sale, the senior vice president owned 26,450 shares in the company, valued at approximately $2,163,874.50. The trade was a 8.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Bank of America Corp DE increased its holdings in shares of Southwest Gas by 54.8% in the 1st quarter. Bank of America Corp DE now owns 395,336 shares of the utilities provider's stock valued at $34,355,000 after acquiring an additional 139,872 shares during the period. Quantinno Capital Management LP boosted its stake in Southwest Gas by 204.5% during the 1st quarter. Quantinno Capital Management LP now owns 38,073 shares of the utilities provider's stock worth $3,309,000 after purchasing an additional 25,569 shares during the period. Hsbc Holdings PLC acquired a new stake in Southwest Gas during the 2nd quarter worth $3,513,000. Odyssean LLC boosted its stake in Southwest Gas by 616.6% during the 2nd quarter. Odyssean LLC now owns 17,178 shares of the utilities provider's stock worth $1,523,000 after purchasing an additional 14,781 shares during the period. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Southwest Gas during the 1st quarter worth $3,799,000. Institutional investors and hedge funds own 92.77% of the company's stock.

Southwest Gas Company Profile

Southwest Gas Corporation NYSE: SWX is a regulated natural gas distribution utility serving residential, commercial and industrial customers. The company purchases, transports and delivers natural gas through its distribution networks, while also providing services related to system operations, maintenance, customer support and energy conservation.

Southwest Gas serves communities in Arizona, Nevada and portions of California. Its service territory includes major metropolitan areas such as Las Vegas and Phoenix, as well as numerous smaller communities across the southwestern United States.

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