SkyWest (NASDAQ:SKYW) Share Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• SkyWest shares rose above their 200-day moving average, trading as high as $108.41 versus the $95.41 average, signaling positive technical momentum.
• Analysts maintain a consensus “Moderate Buy” rating with a $119.40 target price, although recent updates were mixed: TD Cowen raised its target to $115, while Goldman Sachs downgraded the stock to neutral.
• SkyWest reported quarterly EPS of $2.54, below the $2.70 estimate, but approved a $250 million share-repurchase plan; meanwhile, insiders sold roughly $12.9 million of shares during the last quarter.

SkyWest, Inc. (NASDAQ:SKYW - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $95.41 and traded as high as $108.41. SkyWest shares last traded at $107.23, with a volume of 217,219 shares changing hands.

Analyst Upgrades and Downgrades

SKYW has been the topic of a number of research reports. Weiss Ratings upgraded shares of SkyWest from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 16th. TD Cowen increased their price target on shares of SkyWest from $98.00 to $115.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Citigroup lifted their price target 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. Finally, The Goldman Sachs Group lowered shares of SkyWest from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $126.00 to $115.00 in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $119.40.

SkyWest Stock Down 0.6%

The firm has a market capitalization of $4.16 billion, a P/E ratio of 10.66, a P/E/G ratio of 1.55 and a beta of 1.46. The company has a fifty day simple moving average of $99.05 and a 200 day simple moving average of $95.41. 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 quarterly earnings results on Thursday, July 23rd. The transportation company reported $2.54 earnings per share for the quarter, missing the consensus estimate of $2.70 by ($0.16). The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.11 billion. SkyWest had a net margin of 9.78% and a return on equity of 14.58%. SkyWest's revenue was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.91 earnings per share. On average, equities analysts expect that SkyWest, Inc. will post 10.69 EPS for the current fiscal year.

SkyWest announced that its Board of Directors has approved a stock buyback plan on Thursday, July 23rd that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the transportation company to purchase up to 6.6% of its shares through open market purchases. Shares buyback plans are generally 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 company's stock in a transaction that occurred 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 owned 53,323 shares in the company, valued at approximately $5,788,211.65. This represents a 24.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Russell A. Childs sold 50,500 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $113.21, for a total transaction of $5,717,105.00. Following the sale, the chief executive officer owned 346,190 shares in the company, valued at approximately $39,192,169.90. The trade was a 12.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 115,226 shares of company stock valued at $12,855,192 in the last quarter. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On SkyWest

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of SkyWest in the 2nd quarter worth $682,530,000. Vanguard Group Inc. lifted its holdings in shares of SkyWest by 3.2% during the fourth quarter. Vanguard Group Inc. now owns 4,966,485 shares of the transportation company's stock valued at $498,685,000 after purchasing an additional 152,863 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of SkyWest by 0.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,529,333 shares of the transportation company's stock valued at $232,260,000 after buying an additional 20,678 shares during the last quarter. State Street Corp boosted its position in shares of SkyWest by 0.5% during the fourth quarter. State Street Corp now owns 1,517,700 shares of the transportation company's stock valued at $152,392,000 after buying an additional 8,117 shares during the last quarter. Finally, Fuller & Thaler Asset Management Inc. increased its holdings in SkyWest by 27.5% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,184,956 shares of the transportation company's stock worth $118,981,000 after buying an additional 255,408 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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