SkyWest Airlines (SKYW) Soars 3.10% on Share Repurchase Plan

SkyWest Airlines (SKYW) surged 3.10% today, marking its second consecutive day of gains, with a total increase of 6.34% over the past two days. The share price reached its highest level since February 2025, with an intraday gain of 4.66%.

The strategy of buying SKYW shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 8.03% from May 2020 to May 2025, slightly underperforming the market average. With a final value of $163.49 for a $100 initial investment, the strategy showed that compounded returns can still generate noticeable growth over a shorter holding period, although it may not outpace more long-term focused strategies.

SkyWest's recent stock price movements have been influenced by several key developments. On May 6, 2025, the company's Board of Directors approved a $250 million increase to its existing share repurchase plan, bringing the total authorization to approximately $272 million. This strategic move is aimed at enhancing shareholder value and could positively impact the stock price by reducing the number of shares outstanding and potentially increasing earnings per share.

Additionally, SkyWest held its annual shareholders meeting on the same day, where directors were elected and executive compensation was approved. Such corporate governance events are crucial as they provide transparency and reassurance to investors, which can positively influence stock performance. The meeting's outcomes can signal the company's commitment to good governance and strategic direction, further bolstering investor confidence.

Furthermore, SkyWest's Relative Strength (RS) Rating improved from 64 to 75, indicating stronger price performance relative to other stocks. This upgrade suggests that the company's stock is gaining momentum and may attract investors seeking stocks with better performance potential. A higher RS Rating can be a positive indicator for future price movements, as it reflects the stock's ability to outperform the broader market.