SkyWest (NASDAQ:SKYW) Shares Break Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• SkyWest shares rose above their 200-day moving average, reaching $96.83 compared with the $95.26 average, though they remained below the 50-day average of $101.08.
• Analyst sentiment is mixed but leans neutral: the consensus rating is “Hold” from five analysts, with an average price target of $113, above the recent trading price.
• SkyWest missed quarterly EPS and revenue estimates, but authorized a $250 million share-repurchase program; company insiders sold more than 115,000 shares worth approximately $12.9 million over the past three months.

SkyWest, Inc. (NASDAQ:SKYW - Get Free Report)'s share price passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $95.26 and traded as high as $96.83. SkyWest shares last traded at $96.73, with a volume of 250,924 shares trading hands.

Analyst Ratings Changes

A number of research analysts have commented on the company. Cantor Fitzgerald set a $116.00 target price on SkyWest in a report on Friday, October 2nd. Citigroup boosted their price target on SkyWest from $95.00 to $105.00 and gave the company a "neutral" rating in a report on Friday, June 26th. TD Cowen dropped their price target on SkyWest from $123.00 to $116.00 and set a "buy" rating on the stock in a research report on Friday, October 2nd. Weiss Ratings upgraded SkyWest from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 16th. Finally, The Goldman Sachs Group downgraded shares of SkyWest from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $126.00 to $115.00 in a report on Thursday, July 2nd. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, SkyWest presently has a consensus rating of "Hold" and an average price target of $113.00.

SkyWest Price Performance

The company has a current ratio of 0.57, a quick ratio of 0.46 and a debt-to-equity ratio of 0.59. The business has a 50-day moving average price of $101.08 and a two-hundred day moving average price of $95.26. The firm has a market capitalization of $3.76 billion, a price-to-earnings ratio of 9.62, a PEG ratio of 1.42 and a beta of 1.47.

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 (EPS) for the quarter, missing analysts' consensus estimates of $2.70 by ($0.16). The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.11 billion. SkyWest had a net margin of 9.78% and a return on equity of 14.58%. The company's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.91 EPS. As a group, research analysts forecast that SkyWest, Inc. will post 10.47 EPS for the current year.

SkyWest announced that its board has initiated a share repurchase plan on Thursday, July 23rd that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the transportation company to repurchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Activity

In other news, VP Greg Wooley sold 17,726 shares of the business's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $108.55, for a total transaction of $1,924,157.30. Following the completion of the transaction, the vice president owned 53,323 shares of the company's stock, valued at approximately $5,788,211.65. The trade was a 24.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Russell 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 $39,192,169.90. This represents a 12.73% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 115,226 shares of company stock worth $12,855,192. 1.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd increased its stake in shares of SkyWest by 480.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 261 shares of the transportation company's stock valued at $26,000 after purchasing an additional 216 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of SkyWest during the first quarter worth approximately $26,000. Farther Finance Advisors LLC boosted its position in shares of SkyWest by 78.6% during the third quarter. Farther Finance Advisors LLC now owns 468 shares of the transportation company's stock worth $45,000 after buying an additional 206 shares during the period. Integrated Wealth Concepts LLC bought a new position in SkyWest in the 2nd quarter worth approximately $57,000. Finally, Nykredit A S bought a new position in SkyWest in the 2nd quarter worth approximately $112,000. 81.30% of the stock is owned by institutional investors and hedge funds.

About SkyWest

SkyWest, Inc is a regional airline holding company headquartered in St. George, Utah. Its principal subsidiary, SkyWest Airlines, provides scheduled passenger air service on behalf of major U.S. airlines through capacity purchase and codeshare agreements.

SkyWest Airlines operates flights under the United Express, Delta Connection, American Eagle and Alaska Airlines brands. Its services connect smaller and midsize communities with larger hub airports across the United States, with additional service to destinations in Canada and Mexico.

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