Hsbc Holdings PLC Takes Position in SkyWest, Inc. $SKYW

Key Points

• Hsbc Holdings PLC acquired 22,581 SkyWest shares worth approximately $2.25 million, representing about 0.06% of the company. Institutional investors collectively own 81.3% of SkyWest.
• SkyWest reported quarterly EPS of $2.54, below the $2.70 analyst consensus, while revenue rose 6.5% year over year to $1.10 billion. The board also authorized a $250 million share buyback, covering up to 6.6% of outstanding shares.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $121, compared with a recent share price of $98.87. Meanwhile, SkyWest’s CEO and CFO sold company shares recently, contributing to more than $12.8 million in insider sales over the past 90 days.

Hsbc Holdings PLC bought a new position in SkyWest, Inc. (NASDAQ:SKYW - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 22,581 shares of the transportation company's stock, valued at approximately $2,252,000. Hsbc Holdings PLC owned about 0.06% of SkyWest at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in SKYW. Caitong International Asset Management Co. Ltd grew its holdings in SkyWest by 480.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 261 shares of the transportation company's stock valued at $26,000 after buying an additional 216 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of SkyWest in the 1st quarter valued at approximately $26,000. Transamerica Financial Advisors LLC boosted its stake in SkyWest by 273.6% during the fourth quarter. Transamerica Financial Advisors LLC now owns 269 shares of the transportation company's stock worth $27,000 after buying an additional 197 shares during the period. Johnson Financial Group Inc. bought a new position in SkyWest during the 3rd quarter valued at about $62,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of SkyWest by 118.5% in the second quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company's stock worth $64,000 after buying an additional 339 shares during the period. 81.30% of the stock is currently owned by hedge funds and other institutional investors.

SkyWest Price Performance

Shares of SKYW stock opened at $98.87 on Monday. SkyWest, Inc. has a twelve month low of $77.89 and a twelve month high of $123.67. The stock has a market cap of $3.84 billion, a P/E ratio of 9.83, a P/E/G ratio of 1.43 and a beta of 1.46. The stock has a 50 day moving average of $102.37 and a 200 day moving average of $95.54. The company has a current ratio of 0.57, a quick ratio of 0.46 and a debt-to-equity ratio of 0.59.

SkyWest (NASDAQ:SKYW - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The transportation company reported $2.54 earnings per share 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 net margin of 9.78% and a return on equity of 14.58%. The firm's quarterly revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the firm posted $2.91 EPS. As a group, sell-side analysts expect that SkyWest, Inc. will post 10.64 EPS for the current year.

SkyWest announced that its Board of Directors has initiated a share buyback program on Thursday, July 23rd that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the transportation company to purchase up to 6.6% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on SKYW. The Goldman Sachs Group lowered shares of SkyWest from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $126.00 to $115.00 in a report on Thursday, July 2nd. Weiss Ratings upgraded SkyWest from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 16th. TD Cowen upped their price objective on shares of SkyWest from $115.00 to $123.00 and gave the stock a "buy" rating in a research note on Monday, August 24th. Finally, Citigroup raised their target price on shares of SkyWest from $95.00 to $105.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $121.00.

Insider Activity at SkyWest

In other news, CFO Robert J. Simmons sold 25,000 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $110.49, for a total transaction of $2,762,250.00. Following the completion of the sale, the chief financial officer owned 93,902 shares of the company's stock, valued at $10,375,231.98. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Russell A. Childs sold 50,500 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 346,190 shares of the company's stock, valued at approximately $39,192,169.90. This trade represents a 12.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 115,226 shares of company stock worth $12,855,192 in the last ninety days. 1.50% of the stock is owned by company insiders.

SkyWest Company 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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