Zacks Research Upgrades Skyworks Solutions (NASDAQ:SWKS) to Strong-Buy

Key Points

• Zacks Research upgraded Skyworks Solutions from Hold to Strong Buy, citing improved earnings prospects.
• Analyst opinion remains mixed: MarketBeat reports a consensus Hold rating and an average price target of $77.28, with several firms recently lowering ratings or targets.
• Skyworks slightly beat quarterly earnings and revenue estimates, but both were down year over year; below-expectation sales guidance and handset weakness remain concerns.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Wednesday, Zacks reports.

A number of other equities analysts have also weighed in on SWKS. Bank of America decreased their target price on Skyworks Solutions from $78.00 to $72.00 and set an "underperform" rating on the stock in a research note on Wednesday. KeyCorp downgraded Skyworks Solutions from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. cut their price objective on Skyworks Solutions from $70.00 to $65.00 and set a "neutral" rating for the company in a report on Wednesday, July 29th. Morgan Stanley set a $93.00 price objective on shares of Skyworks Solutions in a research report on Wednesday. Finally, William Blair reiterated a "buy" rating on shares of Skyworks Solutions in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Skyworks Solutions presently has a consensus rating of "Hold" and an average price target of $77.28.

Skyworks Solutions Stock Down 2.1%

SWKS opened at $81.21 on Wednesday. The company has a fifty day moving average price of $81.84 and a 200-day moving average price of $68.05. The firm has a market capitalization of $12.22 billion, a P/E ratio of 71.24, a price-to-earnings-growth ratio of 2.10 and a beta of 1.51. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.34 and a quick ratio of 1.94. Skyworks Solutions has a one year low of $51.93 and a one year high of $92.80.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.01. The company had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.04 billion. Skyworks Solutions had a return on equity of 9.70% and a net margin of 4.35%. Equities research analysts expect that Skyworks Solutions will post 3.78 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Skyworks Solutions

Large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Skyworks Solutions during the 2nd quarter worth approximately $1,393,584,000. Pzena Investment Management LLC bought a new position in shares of Skyworks Solutions in the 2nd quarter worth approximately $1,082,972,000. Dimensional Fund Advisors LP raised its position in shares of Skyworks Solutions by 19.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,612,201 shares of the semiconductor manufacturer's stock worth $246,978,000 after acquiring an additional 753,004 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Skyworks Solutions in the 2nd quarter valued at approximately $180,898,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Skyworks Solutions in the 2nd quarter valued at approximately $143,597,000. 85.43% of the stock is owned by hedge funds and other institutional investors.

Skyworks Solutions News Summary

Here are the key news stories impacting Skyworks Solutions this week:

• Positive Sentiment: Skyworks was upgraded to Zacks Rank #1 (Strong Buy), reflecting improved earnings-prospect assessments and potentially supporting near-term sentiment. Article: All You Need to Know About Skyworks Rating Upgrade to Strong Buy
• Positive Sentiment: Fiscal Q4 earnings and revenue came in above consensus, with reported surprises of 0.79% and 1.49%, respectively. However, both sales and earnings were down year over year, limiting the upside from the beat. Article: Skyworks Solutions Tops Q4 Earnings and Revenue Estimates
• Neutral Sentiment: Management sees potential to improve gross margins to 50%–55% over the next 24–36 months as the Qorvo combination progresses. The longer-term opportunity is balanced by near-term integration and execution risks. Article: Skyworks Targets Higher Gross Margins as Qorvo Deal Reshapes Outlook
• Negative Sentiment: The main concern is first-quarter sales guidance below expectations. Analysts also flagged Android handset weakness and a revenue contraction following the Qorvo deal, delaying anticipated merger benefits. Article: Skyworks Stocks Decline as Qorvo Integration Starts With a Revenue Contraction
• Negative Sentiment: Analyst actions added pressure: Barclays cut its rating to Equal Weight, while Citi, RBC and Susquehanna lowered price targets; Goldman Sachs initiated coverage with a Sell rating. Article: Analysts Lower Forecasts on Skyworks Following Q4 Results

Skyworks Solutions Company Profile

Skyworks Solutions, Inc NASDAQ: SWKS is a semiconductor company that designs and manufactures high-performance analog and mixed-signal products for wireless connectivity applications. Its portfolio includes radio-frequency front-end modules, amplifiers, filters, switches, antenna tuners, and other integrated solutions used to transmit, receive, and manage wireless signals.

The company serves a range of markets, including smartphones and other mobile devices, automotive systems, industrial equipment, home automation, medical devices, aerospace, and defense.

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