Principal Financial Group Inc. Lowers Holdings in Southwest Gas Corporation $SWX

Principal Financial Group Inc. trimmed its position in Southwest Gas Corporation (NYSE:SWX) by 3.2% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,083,666 shares of the utilities provider’s stock after selling 35,968 shares during the period. Principal Financial Group Inc.’s holdings in Southwest Gas were worth $86,715,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of SWX. Millennium Management LLC lifted its holdings in Southwest Gas by 74.7% in the first quarter. Millennium Management LLC now owns 209,934 shares of the utilities provider’s stock valued at $15,073,000 after acquiring an additional 89,761 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Southwest Gas by 14.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 190,852 shares of the utilities provider’s stock valued at $13,703,000 after acquiring an additional 24,688 shares during the period. M&T Bank Corp acquired a new stake in Southwest Gas in the second quarter valued at $213,000. Arrowstreet Capital Limited Partnership lifted its holdings in Southwest Gas by 70.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 36,647 shares of the utilities provider’s stock valued at $2,726,000 after acquiring an additional 15,127 shares during the period. Finally, Invesco Ltd. lifted its holdings in Southwest Gas by 2.6% in the second quarter. Invesco Ltd. now owns 393,080 shares of the utilities provider’s stock valued at $29,241,000 after acquiring an additional 10,122 shares during the period. 92.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Southwest Gas

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

• Positive Sentiment: EPS beat and operating improvements — SWX reported $1.91 EPS vs. $1.88 consensus, with operating income rising year-over-year; the beat supports near-term earnings credibility. Read More.
• Positive Sentiment: Analyst upgrade — Citigroup raised its price target from $99 to $106 and initiated/maintained a “buy” view, implying meaningful upside that could support the stock over coming sessions. Read More.
• Positive Sentiment: Regulatory progress and growth optionality — Management flagged 8.5% requested ROE in filed AZ/NV rate cases and strong shipper interest for potential phased expansion beyond Great Basin’s planned 2028 project, which are constructive for long-term rate base growth. Read More.
• Neutral Sentiment: Guidance affirmed but slightly mixed — SWX reiterated FY2026 EPS guidance at $4.170–4.320 (roughly in line with consensus), leaving full-year outlook intact but offering limited new upside. Read More.
• Negative Sentiment: Revenue and throughput weakness — Quarterly revenue declined ~21.6% Y/Y and missed analyst expectations by a wide margin, driven by lower system throughput, which pressures top-line visibility. Read More.
• Negative Sentiment: California rate-case delay — Management said a pending California decision temporarily depressed Q1 results; uncertainty on timing/outcome of that case is a near-term headwind and likely a reason investors pared positions. Read More.
• Neutral Sentiment: Read the full Q1 call/transcript for management color — The earnings call transcript outlines drivers, timing for the California matter and capital plans. Useful if you’re assessing risk/reward. Read More.

Southwest Gas Trading Down 3.1%

Shares of SWX stock opened at $90.79 on Thursday. The firm has a 50-day moving average price of $88.90 and a 200 day moving average price of $84.38. Southwest Gas Corporation has a twelve month low of $66.93 and a twelve month high of $94.43. The company has a market capitalization of $6.57 billion, a price-to-earnings ratio of 13.16, a PEG ratio of 2.41 and a beta of 0.62. The company has a current ratio of 1.45, a quick ratio of 1.18 and a debt-to-equity ratio of 0.84.

Southwest Gas (NYSE:SWX) last announced its earnings results on Tuesday, May 5th. The utilities provider reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.88 by $0.03. Southwest Gas had a net margin of 19.95% and a return on equity of 6.95%. The firm had revenue of $585.12 million during the quarter, compared to the consensus estimate of $695.52 million. During the same quarter in the previous year, the company posted $1.58 EPS. The firm’s revenue for the quarter was down 21.6% on a year-over-year basis. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS. Research analysts forecast that Southwest Gas Corporation will post 4.25 earnings per share for the current fiscal year.

Southwest Gas Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 15th will be paid a dividend of $0.645 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.8%. This is an increase from Southwest Gas’s previous quarterly dividend of $0.62. Southwest Gas’s dividend payout ratio is currently 37.75%.

Wall Street Analyst Weigh In

SWX has been the subject of a number of recent analyst reports. Citigroup raised their target price on Southwest Gas from $99.00 to $106.00 and gave the company a “buy” rating in a report on Wednesday. Wall Street Zen downgraded Southwest Gas from a “hold” rating to a “sell” rating in a research note on Saturday, April 18th. Finally, Mizuho set a $96.00 price objective on Southwest Gas in a report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $89.80.

Southwest Gas Company Profile

Southwest Gas Corporation (NYSE: SWX) is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company’s core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation’s larger natural gas utilities by customer count.