Southwest Gas Corporation (NYSE:SWX) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Southwest Gas Corporation (NYSE:SWX) has been given an average rating of “Moderate Buy” by the six research firms that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $103.20.

A number of brokerages recently issued reports on SWX. Mizuho set a $103.00 target price on Southwest Gas in a report on Wednesday, August 5th. Wall Street Zen lowered Southwest Gas from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Wells Fargo & Company lifted their price target on Southwest Gas from $105.00 to $107.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. Finally, Weiss Ratings lowered shares of Southwest Gas from a “buy (b+)” rating to a “buy (b)” rating in a research note on Monday.

Hedge Funds Weigh In On Southwest Gas

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC grew its holdings in shares of Southwest Gas by 23.6% during the second quarter. Sequoia Financial Advisors LLC now owns 7,685 shares of the utilities provider’s stock valued at $682,000 after buying an additional 1,468 shares in the last quarter. Tidal Investments LLC increased its holdings in shares of Southwest Gas by 80.8% in the 2nd quarter. Tidal Investments LLC now owns 5,879 shares of the utilities provider’s stock valued at $521,000 after purchasing an additional 2,628 shares during the period. Integrated Wealth Concepts LLC acquired a new position in shares of Southwest Gas in the 2nd quarter valued at about $172,000. NewEdge Advisors LLC lifted its position in shares of Southwest Gas by 19.7% in the second quarter. NewEdge Advisors LLC now owns 4,051 shares of the utilities provider’s stock worth $359,000 after purchasing an additional 667 shares in the last quarter. Finally, IFP Advisors Inc lifted its position in shares of Southwest Gas by 137.6% in the second quarter. IFP Advisors Inc now owns 1,212 shares of the utilities provider’s stock worth $107,000 after purchasing an additional 702 shares in the last quarter. 92.77% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Gas Price Performance

NYSE:SWX traded down $1.03 during trading hours on Friday, reaching $85.47. 112,762 shares of the company’s stock were exchanged, compared to its average volume of 561,009. The company has a market capitalization of $6.19 billion, a P/E ratio of 11.16, a price-to-earnings-growth ratio of 2.06 and a beta of 0.57. Southwest Gas has a 12 month low of $76.74 and a 12 month high of $94.46. The company has a quick ratio of 0.99, a current ratio of 1.12 and a debt-to-equity ratio of 0.83. The business’s 50-day simple moving average is $90.29 and its two-hundred day simple moving average is $89.37.

Southwest Gas (NYSE:SWX) last posted its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. Southwest Gas had a return on equity of 6.79% and a net margin of 31.85%.The company had revenue of $358.15 million for the quarter, compared to analysts’ expectations of $416.20 million. During the same quarter in the prior year, the company earned ($0.18) earnings per share. The firm’s revenue was down 9.6% on a year-over-year basis. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS. Sell-side analysts expect that Southwest Gas will post 4.26 EPS for the current fiscal year.

Southwest Gas Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were issued a dividend of $0.645 per share. The ex-dividend date was Monday, August 17th. This represents a $2.58 dividend on an annualized basis and a dividend yield of 3.0%. Southwest Gas’s payout ratio is currently 33.68%.

About Southwest Gas

Southwest Gas Holdings, Inc is a regulated energy company that provides natural gas distribution services through its subsidiary, Southwest Gas Corporation. The utility delivers natural gas to residential, commercial and industrial customers, primarily in Arizona, Nevada and portions of California, serving communities across the desert Southwest.

The company’s utility operations include the acquisition, transportation and distribution of natural gas through a network of pipelines and related infrastructure.