SkyWest (NASDAQ:SKYW) Shares Gap Down - What's Next?

Key Points

• SkyWest shares opened sharply lower, falling from a prior close of $103.51 to $99.71 and later trading near $100.31. The stock remains below its 50-day moving average but above its 200-day average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $121 price target. TD Cowen raised its target to $123 and maintained a Buy rating, while Goldman Sachs downgraded the stock to Neutral.
• SkyWest missed quarterly earnings expectations, reporting $2.54 in EPS versus $2.70 forecast, though revenue rose 6.5% year over year. The company also authorized a $250 million share-repurchase plan, while insiders have sold more than 115,000 shares over the past three months.

SkyWest, Inc. (NASDAQ:SKYW - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $103.51, but opened at $99.71. SkyWest shares last traded at $100.3080, with a volume of 4,646 shares changing hands.

Analyst Ratings Changes

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

SkyWest Stock Down 1.3%

The company has a market capitalization of $3.87 billion, a price-to-earnings ratio of 9.86, a P/E/G ratio of 1.50 and a beta of 1.46. The business has a fifty day simple moving average of $102.12 and a two-hundred day simple moving average of $95.64. The company has a quick ratio of 0.46, a current ratio of 0.57 and a debt-to-equity ratio of 0.59.

SkyWest (NASDAQ:SKYW - Get Free Report) last issued its earnings results 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 during the quarter, compared to analyst estimates of $1.11 billion. SkyWest had a return on equity of 14.58% and a net margin of 9.78%.The company's quarterly revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the company posted $2.91 earnings per share. Equities analysts expect that SkyWest, Inc. will post 10.62 EPS for the current year.

SkyWest announced that its Board of Directors has authorized 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 of directors believes its stock is undervalued.

Insider Buying and Selling

In other SkyWest news, CFO Robert J. Simmons sold 25,000 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $110.49, for a total transaction of $2,762,250.00. Following the completion of the transaction, the chief financial officer directly owned 93,902 shares in the company, valued at $10,375,231.98. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Greg Wooley sold 17,726 shares of SkyWest stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $108.55, for a total value of $1,924,157.30. Following the transaction, the vice president directly 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 SEC filing for this sale provides additional information. Over the last three months, insiders have sold 115,226 shares of company stock valued at $12,855,192. 1.50% of the stock is owned by insiders.

Hedge Funds Weigh In On SkyWest

Institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd grew its stake in SkyWest by 480.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 261 shares of the transportation company's stock worth $26,000 after buying an additional 216 shares during the last quarter. Transamerica Financial Advisors LLC raised its stake in shares of SkyWest by 273.6% in the fourth quarter. Transamerica Financial Advisors LLC now owns 269 shares of the transportation company's stock valued at $27,000 after acquiring an additional 197 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of SkyWest in the first quarter valued at approximately $26,000. Johnson Financial Group Inc. acquired a new position in shares of SkyWest in the 3rd quarter worth approximately $62,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of SkyWest by 118.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company's stock worth $64,000 after acquiring an additional 339 shares in the last quarter. 81.30% of the stock is owned by institutional investors.

About SkyWest

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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