Chief Accounting Officer Of SkyWest Makes $816K Sale

Eric Woodward, Chief Accounting Officer at SkyWest (NASDAQ:SKYW), executed a substantial insider sell on July 31, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Woodward sold 7,000 shares of SkyWest. The total transaction value is $816,718.

In the Friday's morning session, SkyWest's shares are currently trading at $113.1, experiencing a down of 2.47%.

Unveiling the Story Behind SkyWest

SkyWest Inc offers commercial air services in the United States, Canada, Mexico, and the Caribbean. Additionally, it leases aircraft to capable users to help generate revenue. Generally, SkyWest provides regional flights, and utilizes its smaller, lower-cost aircraft to carry passengers that booked tickets through airlines. It partners with carriers across the world to fly and operate aircraft for a fee. SkyWest may use the carriers's brand and ground support to coordinate marketing and easily transport passengers. The company has two reportable segments: SkyWest Airlines, which generates maximum revenue, and SkyWest Leasing.

SkyWest: Delving into Financials

Revenue Growth: SkyWest's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 19.39%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Holistic Profitability Examination:

  • Gross Margin: The company excels with a remarkable gross margin of 25.25%, indicating superior cost efficiency and profitability compared to its industry peers.

  • Earnings per Share (EPS): SkyWest's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.98.

Debt Management: SkyWest's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.0.

Evaluating Valuation:

  • Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.83 is lower than the industry average, indicating potential undervaluation for the stock.

  • Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.26, SkyWest's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.16, SkyWest presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of SkyWest's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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