SkyWest (NASDAQ:SKYW) Rating Lowered to Hold at Zacks Investment Research

SkyWest (NASDAQ:SKYW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday, Zacks.com reports. They presently have a $54.00 price target on the transportation company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 6.51% from the stock’s current price.

According to Zacks, “With improvement in air-travel demand, SkyWest carried 40.7% more passengers in the first six months of 2021 compared with the year-ago level. As a result, passenger load factor (percentage of seats filled by passengers) expanded 960 percentage points to 67.6% in the first half of 2021. SkyWest's sound liquidity position is encouraging. The carrier's current ratio (a measure of liquidity) increased 6.3% year over year in the second quarter. However, a spike in coronavirus cases, induced by the highly contagious Delta variant, hurt the airline’s bookings and increased cancellations. This is likely to reflect in its third-quarter results. Additionally, rising maintenance expenses (up 40.2% in the first half of 2021) and increase in aircraft fuel costs (up 39.7% in the first half of 2021) might weigh on SkyWest’s bottom line.”

Separately, Raymond James boosted their target price on shares of SkyWest from $66.00 to $67.00 and gave the stock a “strong-buy” rating in a research report on Friday, July 30th.

Shares of SKYW traded down $0.51 during midday trading on Tuesday, hitting $50.70. The stock had a trading volume of 7,362 shares, compared to its average volume of 366,292. SkyWest has a fifty-two week low of $27.44 and a fifty-two week high of $61.15. The business has a 50-day simple moving average of $43.62 and a two-hundred day simple moving average of $47.35. The firm has a market cap of $2.55 billion, a P/E ratio of 30.54 and a beta of 2.05. The company has a current ratio of 1.02, a quick ratio of 0.93 and a debt-to-equity ratio of 1.18.

SkyWest (NASDAQ:SKYW) last released its quarterly earnings results on Thursday, July 29th. The transportation company reported $1.22 EPS for the quarter, beating the Zacks’ consensus estimate of $0.28 by $0.94. SkyWest had a net margin of 3.80% and a return on equity of 3.89%. The company had revenue of $656.99 million for the quarter, compared to analyst estimates of $581.50 million. On average, analysts expect that SkyWest will post 3.24 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently bought and sold shares of the business. Harvest Fund Management Co. Ltd acquired a new position in SkyWest during the 1st quarter worth about $28,000. Penserra Capital Management LLC bought a new stake in SkyWest during the 2nd quarter worth about $31,000. Point72 Hong Kong Ltd bought a new stake in SkyWest during the 1st quarter worth about $35,000. FORA Capital LLC bought a new stake in SkyWest during the 1st quarter worth about $66,000. Finally, Quantbot Technologies LP bought a new stake in SkyWest during the 1st quarter worth about $151,000. Hedge funds and other institutional investors own 86.31% 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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