Skyworks Solutions Receives “Hold” Rating Amid Analyst Upgrades

Skyworks Solutions, Inc. (NASDAQ:SWKS) has been assigned an average rating of “Hold” by a group of twenty-two analysts who cover the firm, according to MarketBeat Ratings. This rating reflects a mix of recommendations, with two analysts suggesting a sell, seventeen advising a hold, two advocating for a buy, and one providing a strong buy recommendation. The average one-year price target among these analysts stands at approximately $82.59.

Analysts have recently expressed varied opinions on Skyworks Solutions’ stock. Notably, Citigroup upgraded its rating from “sell” to “neutral” while increasing its price target from $66.00 to $105.00 in a report issued on October 29, 2023. Similarly, Weiss Ratings reaffirmed a “hold (c-)” rating on October 8, while Cfra Research elevated its rating from “moderate sell” to “hold” just a day earlier. Another significant upgrade came from Barclays, which shifted its rating from “underweight” to “equal weight” on October 29, adjusting its price objective from $58.00 to $88.00. Lastly, Stifel Nicolaus set a target price of $72.00 on November 5.

Quarterly Earnings and Dividend Announcement

Skyworks Solutions reported its quarterly earnings on November 4, 2023. The semiconductor manufacturer achieved earnings per share (EPS) of $1.76, surpassing analysts’ consensus estimate of $1.53 by $0.23. The company’s revenue for the quarter reached $1.10 billion, reflecting a year-over-year increase of 7.3%. This performance marks a rise from the $1.55 EPS recorded during the same quarter last year.

In addition to its earnings report, Skyworks Solutions announced a quarterly dividend of $0.71, which was disbursed on December 9, 2023, to shareholders recorded on November 18. This dividend yields approximately 4.7%, and the company’s dividend payout ratio stands at 92.51%.

Insider Trading and Institutional Investments

Recent insider trading activity shows that Reza Kasnavi, Executive Vice President, sold 7,332 shares of the company on November 19 at an average price of $62.26, totaling approximately $456,490.32. Post-transaction, he retains 26,087 shares valued at around $1.62 million, marking a 21.94% decrease in his ownership stake.

Similarly, Senior Vice President Robert John Terry sold 4,945 shares on the same day at an average price of $62.28, amounting to approximately $307,974.60. Following this sale, he holds 19,824 shares valued at about $1.23 million, reflecting a 19.96% decline in his ownership.

On the institutional front, several investors have recently adjusted their stakes in Skyworks Solutions. Park Place Capital Corp increased its holdings by 62.1% in the second quarter, while Atlantic Union Bankshares Corp and Financial Consulate Inc. both initiated new positions valued at around $28,000 and $29,000, respectively. Collectively, institutional investors own approximately 85.43% of the company’s stock.

Skyworks Solutions, headquartered in Irvine, California, is a prominent semiconductor firm that specializes in designing and manufacturing analog and mixed-signal semiconductors for the radio frequency and mobile communications sectors. Its product range includes power amplifiers, front-end modules, and low-noise amplifiers, serving a diverse clientele across mobile, Internet of Things (IoT), automotive, and industrial markets.

As Skyworks Solutions navigates a complex market landscape, analysts and investors continue to monitor its performance closely, particularly given the recent adjustments in ratings and insider trading activities.