Principal Financial Group Inc. Reduces Stock Holdings in Southwest Gas Corporation $SWX

Key Points

• Principal Financial Group reduced its stake in Southwest Gas by 3.2%, selling 35,968 shares to hold 1,083,666 shares (about 1.50% of the company) valued at roughly $86.7M.
• Southwest Gas beat Q1 EPS estimates at $1.91 vs. $1.88 consensus but saw revenues fall ~21.6% Y/Y, citing a pending California rate‑case delay; the company reaffirmed FY2026 guidance at $4.170–4.320 EPS.
• The firm raised its quarterly dividend to $0.645 (annualized $2.58, ~2.8% yield), while Citi upgraded the stock and lifted its price target to $106, reflecting mixed but partially constructive analyst sentiment.

Principal Financial Group Inc. reduced its stake in Southwest Gas Corporation (NYSE:SWX - Free Report) by 3.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,083,666 shares of the utilities provider's stock after selling 35,968 shares during the period. Principal Financial Group Inc. owned 1.50% of Southwest Gas worth $86,715,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the stock. JFS Wealth Advisors LLC grew its position in shares of Southwest Gas by 905.3% during the third quarter. JFS Wealth Advisors LLC now owns 382 shares of the utilities provider's stock worth $30,000 after acquiring an additional 344 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Southwest Gas by 223.5% during the second quarter. EverSource Wealth Advisors LLC now owns 440 shares of the utilities provider's stock worth $33,000 after acquiring an additional 304 shares during the last quarter. Daiwa Securities Group Inc. grew its position in shares of Southwest Gas by 21.3% during the second quarter. Daiwa Securities Group Inc. now owns 939 shares of the utilities provider's stock worth $70,000 after acquiring an additional 165 shares during the last quarter. Advisory Services Network LLC purchased a new position in shares of Southwest Gas during the third quarter worth approximately $72,000. Finally, Danske Bank A S purchased a new position in shares of Southwest Gas during the third quarter worth approximately $94,000. 92.77% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Gas News Roundup

Here are the key news stories impacting Southwest Gas this week:

• Positive Sentiment: EPS beat and operating improvements — SWX reported $1.91 EPS vs. $1.88 consensus, with operating income rising year-over-year; the beat supports near-term earnings credibility. Read More.
• Positive Sentiment: Analyst upgrade — Citigroup raised its price target from $99 to $106 and initiated/maintained a "buy" view, implying meaningful upside that could support the stock over coming sessions. Read More.
• Positive Sentiment: Regulatory progress and growth optionality — Management flagged 8.5% requested ROE in filed AZ/NV rate cases and strong shipper interest for potential phased expansion beyond Great Basin’s planned 2028 project, which are constructive for long-term rate base growth. Read More.
• Neutral Sentiment: Guidance affirmed but slightly mixed — SWX reiterated FY2026 EPS guidance at $4.170–4.320 (roughly in line with consensus), leaving full-year outlook intact but offering limited new upside. Read More.
• Negative Sentiment: Revenue and throughput weakness — Quarterly revenue declined ~21.6% Y/Y and missed analyst expectations by a wide margin, driven by lower system throughput, which pressures top-line visibility. Read More.
• Negative Sentiment: California rate-case delay — Management said a pending California decision temporarily depressed Q1 results; uncertainty on timing/outcome of that case is a near-term headwind and likely a reason investors pared positions. Read More.
• Neutral Sentiment: Read the full Q1 call/transcript for management color — The earnings call transcript outlines drivers, timing for the California matter and capital plans. Useful if you’re assessing risk/reward. Read More.

Southwest Gas Stock Performance

NYSE:SWX opened at $90.79 on Thursday. The firm's fifty day moving average price is $88.90 and its 200 day moving average price is $84.38. Southwest Gas Corporation has a 1-year low of $66.93 and a 1-year high of $94.43. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.45 and a quick ratio of 1.18. The firm has a market cap of $6.57 billion, a price-to-earnings ratio of 13.16, a price-to-earnings-growth ratio of 2.41 and a beta of 0.62.

Southwest Gas (NYSE:SWX - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The utilities provider reported $1.91 earnings per share for the quarter, beating analysts' consensus estimates of $1.88 by $0.03. Southwest Gas had a net margin of 19.95% and a return on equity of 6.95%. The firm had revenue of $585.12 million for the quarter, compared to analyst estimates of $695.52 million. During the same period last year, the firm posted $1.58 EPS. Southwest Gas's quarterly revenue was down 21.6% on a year-over-year basis. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS. On average, sell-side analysts expect that Southwest Gas Corporation will post 4.25 EPS for the current year.

Southwest Gas Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Friday, May 15th will be given a $0.645 dividend. This is a positive change from Southwest Gas's previous quarterly dividend of $0.62. The ex-dividend date is Friday, May 15th. This represents a $2.58 dividend on an annualized basis and a yield of 2.8%. Southwest Gas's payout ratio is 37.75%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Southwest Gas from a "hold" rating to a "sell" rating in a research report on Saturday, April 18th. Mizuho set a $96.00 target price on shares of Southwest Gas in a research report on Wednesday, February 11th. Finally, Citigroup raised their target price on shares of Southwest Gas from $99.00 to $106.00 and gave the stock a "buy" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Southwest Gas has an average rating of "Moderate Buy" and an average price target of $89.80.

About Southwest Gas

Southwest Gas Corporation NYSE: SWX is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company's core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation's larger natural gas utilities by customer count.

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