SkyWest (NASDAQ:SKYW) Shares Gap Down Following Analyst Downgrade

Key Points

• SkyWest shares fell sharply: The stock opened at $87.79 after closing at $96.54, following Deutsche Bank’s downgrade from “buy” to “hold.” Deutsche Bank set a $105 price target.
• Analyst sentiment is broadly cautious: SkyWest has a consensus “hold” rating from analysts, with an average price target of $111.40; Goldman Sachs and other firms have also recently lowered their ratings or targets.
• Operating results remained mixed: Third-quarter EPS of $3.08 slightly exceeded estimates and rose from $2.81 a year earlier, while revenue increased 6.4% to $1.12 billion but missed expectations. The company also authorized a $250 million share-repurchase program.

SkyWest, Inc. (NASDAQ:SKYW - Get Free Report)'s stock price gapped down before the market opened on Friday after Deutsche Bank Aktiengesellschaft downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $96.54, but opened at $87.79. Deutsche Bank Aktiengesellschaft now has a $105.00 price target on the stock. SkyWest shares last traded at $86.5850, with a volume of 78,021 shares traded.

Several other analysts have also recently issued reports on SKYW. The Goldman Sachs Group cut 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. Weiss Ratings upgraded shares of SkyWest from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday. TD Cowen dropped their price objective on shares of SkyWest from $123.00 to $116.00 and set a "buy" rating for the company in a research note on Friday, October 2nd. Finally, Cantor Fitzgerald set a $116.00 target price on shares of SkyWest in a research report on Friday, October 2nd. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, SkyWest presently has a consensus rating of "Hold" and a consensus price target of $111.40.

Insiders Place Their Bets

In other news, insider Wade Steel sold 22,000 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $111.44, for a total value of $2,451,680.00. Following the completion of the sale, the insider directly owned 55,438 shares in the company, valued at $6,178,010.72. This represents a 28.41% 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. Corporate insiders own 1.50% of the company's stock.

Key SkyWest News

Here are the key news stories impacting SkyWest this week:

• Positive Sentiment: Profitability improved: SkyWest reported third-quarter EPS of $3.08, slightly above the $3.07 consensus estimate and up from $2.81 a year earlier. Net income reached approximately $120 million, while revenue increased 6.4% year over year to $1.12 billion. SkyWest third-quarter earnings results
• Positive Sentiment: Forward outlook remains constructive: Management expects 2026 EPS of about $10.60 and is targeting 1%–2% block-hour growth in 2027, indicating continued expansion despite a relatively modest growth forecast. SkyWest 2026 EPS and 2027 growth outlook
• Neutral Sentiment: Results were mixed: Although EPS edged past the FactSet-style consensus, quarterly revenue of $1.12 billion fell short of the $1.14 billion analyst estimate. The company’s 9.78% net margin and 14.58% return on equity remain meaningful positives, but investors may focus on the revenue miss. SkyWest Q3 earnings and revenue analysis
• Negative Sentiment: Deutsche Bank downgraded SkyWest from “buy” to “hold,” while setting a $105 price target. The target still implies potential appreciation from recent levels, but the rating change signals reduced conviction after the stock’s substantial prior advance and could weigh on investor sentiment.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Kings Path Partners LLC acquired a new stake in shares of SkyWest during the 3rd quarter worth about $25,000. Public Employees Retirement System of Ohio acquired a new position in shares of SkyWest during the 1st quarter valued at about $26,000. Farther Finance Advisors LLC increased its position in 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 purchasing an additional 206 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of SkyWest in the 2nd quarter worth $57,000. Finally, Nykredit A S purchased a new position in SkyWest in the second quarter valued at approximately $112,000. 81.30% of the stock is currently owned by hedge funds and other institutional investors.

SkyWest Stock Down 10.3%

The firm's 50-day moving average price is $96.83 and its 200-day moving average price is $96.21. 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 company has a market cap of $3.36 billion, a price-to-earnings ratio of 8.59, a price-to-earnings-growth ratio of 1.38 and a beta of 1.47.

SkyWest (NASDAQ:SKYW - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The transportation company reported $3.08 earnings per share for the quarter, beating the consensus estimate of $3.07 by $0.01. SkyWest had a return on equity of 14.58% and a net margin of 9.78%. The firm had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the company earned $2.81 earnings per share. SkyWest's quarterly revenue was up 6.4% on a year-over-year basis. Sell-side analysts forecast that SkyWest, Inc. will post 10.58 earnings per share for the current fiscal year.

SkyWest announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 23rd that permits the company to repurchase $250 million in outstanding shares. This repurchase authorization permits the transportation company to reacquire up to 6.6% of its shares through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

About SkyWest

SkyWest, Inc NASDAQ: SKYW is an airline holding company that operates regional passenger air service in the United States. Its primary subsidiary, SkyWest Airlines, connects smaller and midsized communities with larger airline hubs and provides scheduled flights under capacity-purchase agreements with major airline partners.

SkyWest Airlines operates flights under the United Express, Delta Connection and Alaska Airlines brands, serving destinations throughout the United States and select locations in Canada, Mexico and the Bahamas.

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