Southwest Gas Holdings’ Stock Surpasses Analyst Target, Provoking Questions for Investors
In the latest trading session, Southwest Gas Holdings, Inc. (Symbol: SWX) shares exceeded the average analyst 12-month target price of $76.00, currently priced at $76.62 per share. When a stock hits its target price, analysts generally face two choices: downgrade due to valuation concerns or increase their target price. Their decisions may also hinge on recent developments within the company that could be influencing the stock’s upward movement. Good news could lead to raising that target price.
Currently, there are six analyst targets contributing to the Zacks coverage for Southwest Gas Holdings, Inc. Although the average stands at $76.00, it’s essential to recognize that this figure represents a mathematical average. Analysts have varied predictions, with one expecting a price of $72.00 while another targets as high as $84.00, resulting in a standard deviation of $4.516.
The core purpose of evaluating the average price target is to benefit from a “wisdom of crowds” approach, aggregating diverse opinions rather than relying solely on a single expert’s perspective. With SWX trading above the average target price, investors face an opportunity to reassess the company. They must decide whether $76.00 is only a stepping stone toward a higher target, or if the valuation has stretched to a level warranting profit-taking. Below is a table detailing the current ratings from analysts covering Southwest Gas Holdings, Inc.:
| SWX Analyst Ratings Overview | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 2 | 1 | 1 | 1 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 4 | 3 | 3 | 3 |
| Sell ratings: | 1 | 1 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.57 | 2.8 | 2.5 | 2.5 |
The average rating seen in the last row on the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This report utilizes information supplied by Zacks Investment Research via Quandl.com. Stay updated with the latest Zacks research report on SWX — it’s available for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
