Southwest Gas Corporation (NYSE:SWX) Stock Has Consensus Price Target of $101.25 According to Brokerages

Key Points

• Analysts are broadly bullish: Eight brokerages rate Southwest Gas a Buy overall (seven Buy, one Strong Buy), with an average 12-month price target of $101.25, above the reported share price of $91.49.
• Quarterly results were mixed: EPS of $0.20 beat the $0.14 consensus, but revenue of $298.18 million fell short of estimates and declined 5.9% year over year.
• The company declared a quarterly dividend of $0.645 per share, or $2.58 annualized, representing a 2.8% yield.

Southwest Gas Corporation (NYSE:SWX - Get Free Report) has received a consensus recommendation of "Buy" from the eight brokerages that are covering the stock, MarketBeat.com reports. Seven investment analysts have rated the stock with a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $101.25.

A number of analysts have weighed in on the company. Wall Street Zen upgraded Southwest Gas from a "sell" rating to a "hold" rating in a report on Saturday. Jefferies Financial Group reiterated a "buy" rating and issued a $106.00 price target on shares of Southwest Gas in a report on Monday, October 5th. JPMorgan Chase & Co. reduced their price target on Southwest Gas from $102.00 to $101.00 and set an "overweight" rating for the company in a research report on Tuesday, October 20th. Wolfe Research upgraded Southwest Gas from a "hold" rating to a "strong-buy" rating in a research note on Thursday. Finally, Scotiabank initiated coverage on Southwest Gas in a research report on Tuesday, September 29th. They set a "sector outperform" rating and a $95.00 price objective on the stock.

Southwest Gas Stock Up 1.1%

NYSE:SWX traded up $1.00 during mid-day trading on Friday, reaching $91.49. The company's stock had a trading volume of 686,986 shares, compared to its average volume of 660,732. 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 1 year low of $78.37 and a 1 year high of $94.46. The stock has a fifty day moving average of $87.12 and a 200-day moving average of $88.35. The firm has a market capitalization of $6.63 billion, a PE ratio of 22.31, a price-to-earnings-growth ratio of 1.97 and a beta of 0.55.

Southwest Gas (NYSE:SWX - Get Free Report) last posted its earnings results on Wednesday, November 4th. The utilities provider reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.06. Southwest Gas had a net margin of 31.85% and a return on equity of 6.79%. The business had revenue of $298.18 million for the quarter, compared to the consensus estimate of $346.50 million. During the same quarter last year, the firm posted $3.74 EPS. The company's revenue for the quarter was down 5.9% on a year-over-year basis. Equities research analysts forecast that Southwest Gas will post 4.27 earnings per share for the current year.

Southwest Gas Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be issued a $0.6450 dividend. The ex-dividend date is Monday, November 16th. This represents a $2.58 dividend on an annualized basis and a yield of 2.8%. Southwest Gas's payout ratio is currently 62.93%.

Insider Activity at Southwest Gas

In other news, SVP Julie Williams sold 2,500 shares of the firm's stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $81.81, for a total value of $204,525.00. Following the sale, the senior vice president directly owned 26,450 shares in the company, valued at approximately $2,163,874.50. This trade represents a 8.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On Southwest Gas

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE lifted its holdings in shares of Southwest Gas by 54.8% during 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 purchasing an additional 139,872 shares during the last quarter. Quantinno Capital Management LP grew 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 buying an additional 25,569 shares during the last quarter. Hsbc Holdings PLC purchased a new position in Southwest Gas during the 2nd quarter worth $3,513,000. Odyssean LLC increased its position in Southwest Gas by 616.6% during the 2nd quarter. Odyssean LLC now owns 17,178 shares of the utilities provider's stock valued at $1,523,000 after buying an additional 14,781 shares in the last quarter. Finally, Amundi raised its stake in Southwest Gas by 239.6% in the second quarter. Amundi now owns 22,767 shares of the utilities provider's stock valued at $2,019,000 after buying an additional 16,063 shares during the last quarter. Hedge funds and other institutional investors 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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