SkyWest (NASDAQ:SKYW) Downgraded by Zacks Investment Research


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Zacks Investment Research lowered shares of SkyWest (NASDAQ:SKYW) from a hold rating to a strong sell rating in a research report report published on Tuesday, Zacks.com reports. Zacks Investment Research currently has $43.00 price objective on the transportation company’s stock.

According to Zacks, “Coronavirus-induced depressed air-travel demand is affecting SkyWest’s revenues which declined 28% year over year last year. The company’s top line is expected to have been weak in the first quarter of 2021 as well. Detailed results will be available on Apr 29. While travel demand is gradually improving with increased vaccinations and easing coronavirus-induced restrictions, it continues to be below 2019 levels. Moreover, with the airline already struggling on the bottom-line front amid coronavirus woes, rising maintenance expenses (surged 20.3% year over year in 2020) further add to its concerns. The airline anticipates maintenance expenses to increase in the first quarter of 2021 as well, from the year-ago period. However, SkyWest’s sound liquidity position is helping the carrier efficiently deal with coronavirus-led woes.”

A number of other brokerages have also recently commented on SKYW. The Goldman Sachs Group raised their price target on shares of SkyWest from $51.00 to $70.00 and gave the stock a buy rating in a research note on Tuesday, March 16th. Deutsche Bank Aktiengesellschaft upgraded shares of SkyWest from a hold rating to a buy rating and set a $65.00 price target for the company in a research note on Monday, March 1st. One research analyst has rated the stock with a sell rating, three have assigned a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of Buy and an average price target of $58.60.

SKYW stock opened at $50.25 on Tuesday. SkyWest has a twelve month low of $21.14 and a twelve month high of $61.15. The company has a market cap of $2.53 billion, a PE ratio of 23.16 and a beta of 2.10. The business’s 50-day simple moving average is $55.25 and its 200 day simple moving average is $44.00. The company has a quick ratio of 1.03, a current ratio of 1.14 and a debt-to-equity ratio of 1.24.

SkyWest (NASDAQ:SKYW) last released its earnings results on Thursday, February 4th. The transportation company reported ($0.93) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.83) by ($0.10). SkyWest had a return on equity of 5.10% and a net margin of 4.84%. The firm had revenue of $589.64 million for the quarter, compared to analyst estimates of $529.96 million.

In other news, CEO Russell A. Childs sold 41,020 shares of SkyWest stock in a transaction that occurred on Monday, March 8th. The shares were sold at an average price of $58.21, for a total value of $2,387,774.20. Following the completion of the transaction, the chief executive officer now owns 213,877 shares in the company, valued at $12,449,780.17. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Eric Woodward sold 3,000 shares of SkyWest stock in a transaction that occurred on Tuesday, February 23rd. The shares were sold at an average price of $60.37, for a total transaction of $181,110.00. The disclosure for this sale can be found here. Insiders sold 74,272 shares of company stock valued at $4,295,078 in the last quarter. 2.70% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of SKYW. Vantage Consulting Group Inc bought a new position in SkyWest in the 4th quarter worth approximately $62,000. Veriti Management LLC bought a new position in SkyWest in the 4th quarter worth approximately $99,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in SkyWest in the 4th quarter worth approximately $116,000. ExodusPoint Capital Management LP bought a new position in SkyWest in the 4th quarter worth approximately $203,000. Finally, GSA Capital Partners LLP bought a new position in SkyWest in the 4th quarter worth approximately $210,000. Hedge funds and other institutional investors own 87.54% of the company’s stock.

About SkyWest

SkyWest, Inc is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines.

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