SkyWater Technology (NASDAQ:SKYT) Shares Gap Down - Should You Sell?

Key Points

• SkyWater Technology (SKYT) shares gapped down Monday, opening at $31.55 after a $33.58 close and trading down about 7.6% to roughly $30.65 on elevated volume.
• Analysts have been trimming ratings—MarketBeat shows a consensus of "Reduce" with a $32 price target after multiple downgrades (one Buy, five Holds, two Sells).
• The company reported an EPS miss for the quarter (‑$0.03 vs. ‑$0.01 expected) despite revenue beating estimates, and the CFO sold 84,215 shares (~$2.56M) under a 10b5‑1 plan; insiders own ~37.9% while institutions hold ~70%.

SkyWater Technology, Inc. (NASDAQ:SKYT - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $33.58, but opened at $31.55. SkyWater Technology shares last traded at $30.6490, with a volume of 433,070 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on SKYT shares. Zacks Research cut SkyWater Technology from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 4th. Weiss Ratings restated a "sell (e+)" rating on shares of SkyWater Technology in a research report on Friday, March 27th. Needham & Company LLC lowered shares of SkyWater Technology from a "buy" rating to a "hold" rating in a research report on Monday, January 26th. TD Cowen downgraded shares of SkyWater Technology from a "buy" rating to a "hold" rating and upped their price objective for the company from $24.00 to $35.00 in a research note on Tuesday, January 27th. Finally, Craig Hallum downgraded shares of SkyWater Technology from a "buy" rating to a "hold" rating and set a $35.00 price objective for the company. in a research note on Tuesday, January 27th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, SkyWater Technology has a consensus rating of "Reduce" and a consensus price target of $32.00.

SkyWater Technology Trading Down 7.6%

The company has a market capitalization of $1.52 billion, a P/E ratio of 12.77 and a beta of 3.47. The stock's 50 day moving average is $29.27 and its 200-day moving average is $24.35. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.60 and a quick ratio of 0.52.

SkyWater Technology (NASDAQ:SKYT - Get Free Report) last issued its earnings results on Wednesday, February 25th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.02). The company had revenue of $171.04 million during the quarter, compared to analysts' expectations of $160.05 million. SkyWater Technology had a negative return on equity of 6.89% and a net margin of 26.90%.The company's revenue for the quarter was up 13.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.04 EPS. As a group, equities research analysts anticipate that SkyWater Technology, Inc. will post -0.42 earnings per share for the current year.

Insider Activity at SkyWater Technology

In other news, CFO Steve Manko sold 84,215 shares of the firm's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $30.41, for a total transaction of $2,560,978.15. Following the sale, the chief financial officer directly owned 171,567 shares in the company, valued at $5,217,352.47. This trade represents a 32.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 37.85% of the stock is owned by insiders.

Hedge Funds Weigh In On SkyWater Technology

Large investors have recently made changes to their positions in the company. Quarry LP purchased a new position in shares of SkyWater Technology during the 4th quarter worth about $25,000. Federated Hermes Inc. purchased a new position in shares of SkyWater Technology during the 2nd quarter worth about $25,000. BNP Paribas Financial Markets boosted its stake in shares of SkyWater Technology by 56.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,749 shares of the company's stock worth $27,000 after purchasing an additional 991 shares during the period. State of Wyoming purchased a new position in shares of SkyWater Technology during the 4th quarter worth about $35,000. Finally, Russell Investments Group Ltd. boosted its stake in shares of SkyWater Technology by 814.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,468 shares of the company's stock worth $46,000 after purchasing an additional 2,198 shares during the period. 70.00% of the stock is owned by hedge funds and other institutional investors.

SkyWater Technology Company Profile

SkyWater Technology Solutions, Inc is a U.S.-based specialty semiconductor foundry headquartered in Bloomington, Minnesota. The company focuses on the development and manufacture of high-reliability integrated circuits using advanced processes on 200-millimeter wafers.

SkyWater's service offerings span analog/mixed-signal, radio frequency (RF), micro-electromechanical systems (MEMS) and advanced packaging technologies. Its turnkey model includes multi-project wafer (MPW) runs, volume production, design enablement support and assembly and test services, enabling customers to take concepts from prototype to market.

Serving aerospace, defense, automotive, industrial, medical and communications sectors, SkyWater supports applications that demand rigorous performance, quality and traceability.

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