Southwest Gas (NYSE:SWX) Stock Rating Raised to Strong-Buy at Wolfe Research

Wolfe Research upgraded shares of Southwest Gas (NYSE:SWX) from a hold rating to a strong-buy rating in a research report released on Thursday,Zacks reports.

A number of other brokerages have also recently issued reports on SWX. JPMorgan Chase & Co. dropped their target price on Southwest Gas from $102.00 to $101.00 and set an “overweight” rating for the company in a report on Tuesday, October 20th. Scotiabank began coverage on Southwest Gas in a research note on Tuesday, September 29th. They issued a “sector outperform” rating and a $95.00 price target on the stock. Mizuho set a $103.00 price target on Southwest Gas in a research report on Wednesday, August 5th. Wells Fargo & Company increased their price objective 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, Wall Street Zen cut Southwest Gas from a “hold” rating to a “sell” rating in a report on Sunday, October 4th. One equities research analyst has rated the stock with a Strong Buy rating and seven have given a Buy rating to the company. Based on data from MarketBeat.com, Southwest Gas presently has a consensus rating of “Buy” and an average price target of $101.25.

Southwest Gas Stock Down 2.0%

Southwest Gas stock opened at $90.48 on Thursday. Southwest Gas has a fifty-two week low of $78.26 and a fifty-two week high of $94.46. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.89 and a quick ratio of 0.99. The firm has a market cap of $6.56 billion, a price-to-earnings ratio of 22.07, a P/E/G ratio of 1.94 and a beta of 0.55. The firm has a fifty day moving average price of $87.07 and a two-hundred day moving average price of $88.31.

Southwest Gas (NYSE:SWX) last issued its quarterly earnings results on Wednesday, November 4th. The utilities provider reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.06. The firm had revenue of $298.18 million during the quarter, compared to the consensus estimate of $346.50 million. Southwest Gas had a net margin of 17.23% and a return on equity of 6.98%. The business’s revenue was down 5.9% on a year-over-year basis. During the same period in the prior year, the firm earned $3.74 EPS. As a group, analysts forecast that Southwest Gas will post 4.27 earnings per share for the current year.

Southwest Gas Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be given a $0.6450 dividend. The ex-dividend date is Monday, November 16th. This represents a $2.58 dividend on an annualized basis and a yield of 2.9%. Southwest Gas’s payout ratio is 62.93%.

Insiders Place Their Bets

In other news, SVP Julie Williams sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $81.81, for a total transaction of $204,525.00. Following the completion of the sale, the senior vice president owned 26,450 shares of the company’s stock, valued at approximately $2,163,874.50. This trade represents a 8.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of SWX. BlackRock Inc. acquired a new position in Southwest Gas during the 2nd quarter worth $991,549,000. Maverick Capital Ltd. boosted its position in Southwest Gas by 3.9% in the 1st quarter. Maverick Capital Ltd. now owns 2,126,927 shares of the utilities provider’s stock valued at $184,830,000 after buying an additional 78,874 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of Southwest Gas by 11.4% in the 1st quarter. Bank of New York Mellon Corp now owns 846,251 shares of the utilities provider’s stock valued at $73,539,000 after buying an additional 86,456 shares during the period. BROOKFIELD Corp ON increased its stake in shares of Southwest Gas by 106.9% in the 1st quarter. BROOKFIELD Corp ON now owns 699,626 shares of the utilities provider’s stock valued at $60,797,000 after buying an additional 361,556 shares during the period. Finally, Renaissance Technologies LLC increased its stake in shares of Southwest Gas by 281.2% in the 1st quarter. Renaissance Technologies LLC now owns 459,000 shares of the utilities provider’s stock valued at $39,887,000 after buying an additional 338,600 shares during the period. 92.77% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Southwest Gas

Here are the key news stories impacting Southwest Gas this week:

• Positive Sentiment: Southwest Gas beat third-quarter adjusted EPS expectations, reporting $0.20 per share versus analysts’ estimate of about $0.14. The company attributed support to lower interest costs, and it reaffirmed its 2026 adjusted EPS outlook of $4.17–$4.32. Article: SWX Q3 Earnings Beat on Lower Interest Cost, Sales Decline Y/Y
• Positive Sentiment: The company completed Nevada and California rate cases, while its Arizona case continues to progress. Approved rate increases can support utility earnings by improving recovery of operating costs. Article: How Investors Are Reacting To Southwest Gas Holdings (SWX) Rate Increase Approvals
• Positive Sentiment: Southwest Gas says its $2.3 billion Great Basin expansion remains on track, with a certificate filing planned for the fourth quarter and the project targeted for 2028. This offers a longer-term growth opportunity, though it depends on regulatory approval and execution. Article: Southwest Gas reaffirms 2026 adjusted EPS while advancing Great Basin expansion
• Neutral Sentiment: One valuation analysis estimates SWX may be about 8% undervalued, citing the earnings beat and rate relief. This is an analytical estimate, not a company forecast or assurance of share-price gains. Article: Southwest Gas Holdings (SWX) Could Be 8% Undervalued
• Negative Sentiment: Third-quarter revenue was $298.2 million, below analysts’ roughly $346.5 million estimate and down 5.9% year over year. The shortfall and declining sales temper the positive EPS surprise. Article: Southwest Gas Q3 Adjusted Earnings Rise, Revenue Falls

Southwest Gas Company Profile

Southwest Gas Corporation (NYSE: SWX) is a regulated natural gas distribution utility serving residential, commercial and industrial customers. The company purchases, transports and delivers natural gas through its distribution networks, while also providing services related to system operations, maintenance, customer support and energy conservation.

Southwest Gas serves communities in Arizona, Nevada and portions of California. Its service territory includes major metropolitan areas such as Las Vegas and Phoenix, as well as numerous smaller communities across the southwestern United States.