BlackRock Inc. Purchases Shares of 6,871,338 SkyWest, Inc. $SKYW

Key Points

• BlackRock acquired 6.87 million SkyWest shares worth approximately $682.5 million, giving it an estimated 17.7% stake. Institutional investors collectively own 81.3% of the airline company.
• Analyst sentiment remains positive overall, with SkyWest carrying a “Moderate Buy” consensus rating and an average price target of $119.40, although Goldman Sachs downgraded the stock to neutral.
• SkyWest missed quarterly earnings expectations, reporting $2.54 in EPS versus $2.70 forecast, but revenue rose 6.5% year over year. The company also authorized a $250 million share-repurchase program, covering up to 6.6% of outstanding shares.

BlackRock Inc. purchased a new stake in SkyWest, Inc. (NASDAQ:SKYW - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The firm purchased 6,871,338 shares of the transportation company's stock, valued at approximately $682,530,000. BlackRock Inc. owned approximately 17.70% of SkyWest as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in SkyWest by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,590 shares of the transportation company's stock valued at $2,061,000 after acquiring an additional 1,034 shares during the last quarter. United Services Automobile Association purchased a new position in SkyWest in the first quarter worth $227,000. M&T Bank Corp grew its holdings in SkyWest by 7.6% in the second quarter. M&T Bank Corp now owns 2,825 shares of the transportation company's stock worth $290,000 after purchasing an additional 199 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in shares of SkyWest by 118.5% during the second quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company's stock worth $64,000 after purchasing an additional 339 shares in the last quarter. Finally, First Trust Advisors LP increased its position in shares of SkyWest by 8.8% during the second quarter. First Trust Advisors LP now owns 85,577 shares of the transportation company's stock worth $8,812,000 after purchasing an additional 6,938 shares in the last quarter. Hedge funds and other institutional investors own 81.30% of the company's stock.

Analyst Upgrades and Downgrades

SKYW has been the subject of a number of recent analyst reports. Citigroup raised their price objective on SkyWest from $95.00 to $105.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. Weiss Ratings raised SkyWest from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 16th. TD Cowen increased their price target on SkyWest from $98.00 to $115.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Finally, The Goldman Sachs Group downgraded SkyWest from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $126.00 to $115.00 in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $119.40.

Insider Transactions at SkyWest

In related news, CFO Robert J. Simmons sold 25,000 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $110.49, for a total value of $2,762,250.00. Following the transaction, the chief financial officer owned 93,902 shares in the company, valued at approximately $10,375,231.98. This represents a 21.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Russell A. Childs sold 50,500 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $113.21, for a total transaction of $5,717,105.00. Following the completion of the transaction, the chief executive officer owned 346,190 shares in the company, valued at approximately $39,192,169.90. This trade represents a 12.73% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 115,226 shares of company stock valued at $12,855,192. 1.50% of the stock is owned by company insiders.

SkyWest Price Performance

NASDAQ SKYW opened at $101.09 on Monday. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.57 and a quick ratio of 0.46. The stock's fifty day moving average price is $101.51 and its 200 day moving average price is $95.64. SkyWest, Inc. has a 1 year low of $77.89 and a 1 year high of $123.94. The company has a market cap of $3.93 billion, a price-to-earnings ratio of 10.05, a PEG ratio of 1.45 and a beta of 1.45.

SkyWest (NASDAQ:SKYW - Get Free Report) last issued its earnings results on Thursday, July 23rd. The transportation company reported $2.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.70 by ($0.16). The firm had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.11 billion. SkyWest had a return on equity of 14.58% and a net margin of 9.78%.The business's revenue was up 6.5% on a year-over-year basis. During the same quarter last year, the business earned $2.91 EPS. As a group, equities research analysts forecast that SkyWest, Inc. will post 10.69 earnings per share for the current year.

SkyWest announced that its board has authorized a share buyback program on Thursday, July 23rd that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the transportation company to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

SkyWest Profile

SkyWest, Inc NASDAQ: SKYW is a regional airline holding company that provides air transportation services through its primary subsidiary, SkyWest Airlines. The company operates flights under capacity purchase agreements with major carriers such as United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By specializing in regional connectivity, SkyWest links smaller communities to larger hubs using a fleet of regional jets and turboprop aircraft.

Headquartered in St. George, Utah, SkyWest oversees all aspects of its airline operations, including flight scheduling, crew training and aircraft maintenance.

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