Skyworks Solutions (NASDAQ:SWKS) Shares Gap Down After Analyst Downgrade

Key Points

• Skyworks shares fell sharply after Susquehanna cut its price target from $90 to $75 while maintaining a neutral rating; the stock opened at $73.28, down from its prior close of $85.40.
• The company narrowly beat quarterly estimates, reporting adjusted EPS of $1.28 and revenue of about $1.05 billion, but both results were lower year over year.
• Near-term demand outlook is a concern: first-quarter sales guidance missed expectations amid a sluggish smartphone market. Analysts overall rate the stock “Hold,” with a consensus target price of $78.22.

Skyworks Solutions, Inc. (NASDAQ:SWKS - Get Free Report)'s stock price gapped down prior to trading on Wednesday after Susquehanna lowered their price target on the stock from $90.00 to $75.00. The stock had previously closed at $85.40, but opened at $73.28. Susquehanna currently has a neutral rating on the stock. Skyworks Solutions shares last traded at $78.9490, with a volume of 1,511,406 shares traded.

Several other research analysts have also issued reports on the stock. Citigroup increased their price target on shares of Skyworks Solutions from $64.00 to $90.00 and gave the stock a "neutral" rating in a research note on Tuesday, October 6th. Morgan Stanley upped their price objective on shares of Skyworks Solutions from $72.00 to $95.00 and gave the stock an "equal weight" rating in a report on Monday. UBS Group raised their target price on shares of Skyworks Solutions from $70.00 to $90.00 and gave the company a "neutral" rating in a research note on Thursday, October 29th. The Goldman Sachs Group set a $78.00 target price on shares of Skyworks Solutions in a report on Wednesday. Finally, William Blair restated a "buy" rating on shares of Skyworks Solutions in a research note on Wednesday, July 29th. Five research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $78.22.

Key Skyworks Solutions News

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

• Positive Sentiment: The Qorvo combination is expected to create a broader RF platform and expand Skyworks’ reach into markets including defense, automotive and infrastructure. Management is targeting at least $500 million in annual cost synergies, with a goal of reaching 50%–55% gross margins over the next 24–36 months. Skyworks Begins New Chapter Following Qorvo Combination
• Neutral Sentiment: Fiscal Q4 adjusted EPS of $1.28 and revenue of about $1.05 billion edged past consensus. However, both earnings and sales were lower year over year, tempering the significance of the beat. Skyworks Tops Q4 Earnings and Revenue Estimates
• Negative Sentiment: Skyworks’ first-quarter sales outlook came in below analysts’ expectations. The company cited a sluggish smartphone market, raising concerns about near-term demand and weighing on the stock after results. Skyworks tumbles as sluggish smartphone market weighs on forecast
• Negative Sentiment: Analyst actions added to the cautious tone: Susquehanna cut its price target to $75 and assigned a neutral rating, while Goldman Sachs initiated coverage with a sell rating and a $78 target. Analysts Lower Forecasts Following Q4 Results

Institutional Investors Weigh In On Skyworks Solutions

Several institutional investors and hedge funds have recently made changes to their positions in SWKS. Fortitude Family Office LLC boosted its stake in Skyworks Solutions by 254.7% during the third quarter. Fortitude Family Office LLC now owns 337 shares of the semiconductor manufacturer's stock valued at $29,000 after buying an additional 242 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in Skyworks Solutions by 108.4% in the 2nd quarter. Parkside Financial Bank & Trust now owns 396 shares of the semiconductor manufacturer's stock worth $27,000 after acquiring an additional 206 shares during the last quarter. Caitlin John LLC bought a new stake in Skyworks Solutions in the 2nd quarter worth approximately $27,000. J.Safra Asset Management Corp bought a new stake in Skyworks Solutions in the 2nd quarter worth approximately $28,000. Finally, Hara Capital LLC purchased a new stake in shares of Skyworks Solutions during the 2nd quarter worth approximately $35,000. Institutional investors own 85.43% of the company's stock.

Skyworks Solutions Stock Down 6.8%

The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.94 and a current ratio of 3.10. The firm has a market capitalization of $11.97 billion, a PE ratio of 41.23, a PEG ratio of 2.32 and a beta of 1.51. The company has a fifty day moving average price of $81.21 and a 200-day moving average price of $67.81.

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 for the quarter, topping the consensus estimate of $1.27 by $0.01. Skyworks Solutions had a return on equity of 10.74% and a net margin of 7.23%. The company had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1.04 billion. As a group, analysts expect that Skyworks Solutions, Inc. will post 3.61 earnings per share for the current year.

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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