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

Shares of SkyWest, Inc. (NASDAQ:SKYW) 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 changing hands.

SKYW has been the topic of a number of other research reports. Cantor Fitzgerald set a $116.00 target price on SkyWest in a research note on Friday, October 2nd. The Goldman Sachs Group lowered shares of SkyWest from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $126.00 to $115.00 in a research note on Thursday, July 2nd. TD Cowen reduced 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, Weiss Ratings upgraded shares of SkyWest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, SkyWest has a consensus rating of “Hold” and a consensus target price of $111.40.

Insider Buying and Selling

In related news, insider Wade Steel sold 22,000 shares of SkyWest stock in a transaction dated 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 trade represents a 28.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.50% of the stock is currently owned by company insiders.

Trending Headlines about SkyWest

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.

Hedge Funds Weigh In On SkyWest

A number of large investors have recently modified their holdings of SKYW. BlackRock Inc. bought a new position in shares of SkyWest in the second quarter valued at about $682,530,000. Bank of New York Mellon Corp acquired a new position in shares of SkyWest in the 2nd quarter valued at about $28,177,000. Bank of America Corp DE bought a new position in shares of SkyWest during the 2nd quarter worth about $24,254,000. William Blair Investment Management LLC acquired a new stake in shares of SkyWest in the 2nd quarter worth about $15,301,000. Finally, J. Goldman & Co LP bought a new position in SkyWest during the 2nd quarter valued at $12,992,000. 81.30% of the stock is currently owned by institutional investors and hedge funds.

SkyWest Stock Performance

The company has a current ratio of 0.57, a quick ratio of 0.46 and a debt-to-equity ratio of 0.59. The stock has a market cap of $3.36 billion, a P/E ratio of 8.59, a PEG ratio of 1.38 and a beta of 1.47. The company’s 50-day simple moving average is $96.83 and its 200 day simple moving average is $96.21.

SkyWest (NASDAQ:SKYW) last announced its earnings results on Thursday, October 29th. The transportation company reported $3.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.07 by $0.01. The company had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.14 billion. SkyWest had a net margin of 9.78% and a return on equity of 14.58%. The firm’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the business earned $2.81 earnings per share. As a group, sell-side analysts expect that SkyWest, Inc. will post 10.58 EPS 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 buyback authorization permits the transportation company to purchase up to 6.6% of its stock through open market purchases. Share buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

SkyWest Company Profile

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.