Brandywine Global Investment Management LLC Makes New $12.84 Million Investment in SkyWest, Inc. $SKYW

Key Points

• Brandywine Global Investment Management LLC acquired a new stake in SkyWest, Inc., purchasing 146,955 shares worth approximately $12.84 million during the 1st quarter.
• SkyWest recently reported $2.91 earnings per share for the quarter, exceeding expectations and showcasing a 19.4% increase in revenue compared to the previous year.
• The board has authorized a $250 million stock buyback program, indicating confidence in the company's valuation and allowing for the reacquisition of up to 6.4% of outstanding shares.

Brandywine Global Investment Management LLC purchased a new position in shares of SkyWest, Inc. (NASDAQ:SKYW - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 146,955 shares of the transportation company's stock, valued at approximately $12,839,000. Brandywine Global Investment Management LLC owned 0.36% of SkyWest as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also bought and sold shares of the business. Cookson Peirce & Co. Inc. increased its position in SkyWest by 16.2% during the first quarter. Cookson Peirce & Co. Inc. now owns 12,908 shares of the transportation company's stock worth $1,128,000 after acquiring an additional 1,804 shares during the period. Neuberger Berman Group LLC increased its position in SkyWest by 128.5% during the first quarter. Neuberger Berman Group LLC now owns 4,659 shares of the transportation company's stock worth $407,000 after acquiring an additional 2,620 shares during the period. Russell Investments Group Ltd. grew its stake in SkyWest by 57.8% during the first quarter. Russell Investments Group Ltd. now owns 42,886 shares of the transportation company's stock worth $3,747,000 after buying an additional 15,701 shares in the last quarter. Public Sector Pension Investment Board grew its stake in SkyWest by 46.1% during the first quarter. Public Sector Pension Investment Board now owns 146,769 shares of the transportation company's stock worth $12,823,000 after buying an additional 46,302 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in SkyWest during the first quarter worth about $37,474,000. 81.30% of the stock is owned by institutional investors.

SkyWest Price Performance

Shares of SKYW traded up $0.71 during mid-day trading on Thursday, reaching $114.15. The company had a trading volume of 78,153 shares, compared to its average volume of 397,959. The company's 50 day simple moving average is $108.69 and its 200 day simple moving average is $100.11. SkyWest, Inc. has a 1-year low of $72.70 and a 1-year high of $135.57. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.63 and a current ratio of 0.73. The company has a market capitalization of $4.61 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 1.15 and a beta of 1.98.

SkyWest (NASDAQ:SKYW - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The transportation company reported $2.91 earnings per share for the quarter, beating analysts' consensus estimates of $2.34 by $0.57. SkyWest had a net margin of 10.62% and a return on equity of 16.69%. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $979.95 million. During the same period last year, the company posted $1.82 EPS. The firm's quarterly revenue was up 19.4% compared to the same quarter last year. Analysts expect that SkyWest, Inc. will post 9.01 EPS for the current year.

SkyWest announced that its board has approved a stock repurchase program on Wednesday, May 7th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the transportation company to purchase up to 6.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at SkyWest

In related news, CFO Robert J. Simmons sold 17,186 shares of SkyWest stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $117.46, for a total transaction of $2,018,667.56. Following the sale, the chief financial officer directly owned 114,017 shares in the company, valued at $13,392,436.82. This trade represents a 13.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James L. Welch sold 10,000 shares of SkyWest stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $116.09, for a total transaction of $1,160,900.00. Following the sale, the director owned 27,717 shares in the company, valued at approximately $3,217,666.53. This represents a 26.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 136,186 shares of company stock worth $15,201,258 over the last quarter. Insiders own 2.00% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Wall Street Zen upgraded shares of SkyWest from a "hold" rating to a "buy" rating in a research note on Friday, May 16th. Raymond James Financial increased their price objective on shares of SkyWest from $128.00 to $140.00 and gave the stock an "outperform" rating in a research note on Friday, July 25th. Finally, Evercore ISI increased their price objective on shares of SkyWest from $120.00 to $130.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and an average price target of $126.75.

SkyWest Company Profile

SkyWest, Inc is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest's airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines.