SkyWater Technology (NASDAQ:SKYT) Trading 8% Higher - Should You Buy?

Key Points

• SkyWater Technology's share price increased by 8%, reaching $19.34, despite a significant decline in trading volume compared to its average.
• Analysts have mixed opinions on the stock; while Needham & Company offers a "buy" rating with a revised price target of $15, Weiss Ratings maintains a "sell" rating.
• Insiders have recently sold over 3.4 million shares of the company, indicating potential concerns among investors, while institutional ownership remains high at 70%.

SkyWater Technology, Inc. (NASDAQ:SKYT - Get Free Report)'s share price was up 8% on Tuesday . The company traded as high as $18.93 and last traded at $19.34. Approximately 248,582 shares traded hands during trading, a decline of 73% from the average daily volume of 928,140 shares. The stock had previously closed at $17.90.

Analysts Set New Price Targets

A number of research analysts have commented on SKYT shares. Weiss Ratings reissued a "sell (d-)" rating on shares of SkyWater Technology in a research report on Saturday, September 27th. Needham & Company LLC upped their price objective on shares of SkyWater Technology from $11.00 to $15.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Finally, Wall Street Zen raised shares of SkyWater Technology from a "sell" rating to a "hold" rating in a research report on Friday, September 5th. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.00.

SkyWater Technology Stock Performance

The company has a current ratio of 1.06, a quick ratio of 0.97 and a debt-to-equity ratio of 0.68. The stock has a 50-day simple moving average of $12.61 and a 200-day simple moving average of $9.94. The company has a market capitalization of $873.31 million, a price-to-earnings ratio of -53.41 and a beta of 3.51.

Insiders Place Their Bets

In related news, Director Loren A. Unterseher sold 756,516 shares of the stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $12.06, for a total value of $9,123,582.96. Following the completion of the transaction, the director owned 8,161,012 shares in the company, valued at $98,421,804.72. This trade represents a 8.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold a total of 3,402,446 shares of company stock worth $41,689,461 over the last ninety days. Company insiders own 37.85% of the company's stock.

Institutional Trading of SkyWater Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. raised its position in SkyWater Technology by 15.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,693,056 shares of the company's stock valued at $16,660,000 after purchasing an additional 229,954 shares during the last quarter. Emerald Advisers LLC grew its stake in SkyWater Technology by 36.2% in the second quarter. Emerald Advisers LLC now owns 1,362,983 shares of the company's stock valued at $13,412,000 after acquiring an additional 362,267 shares during the period. Emerald Mutual Fund Advisers Trust grew its stake in SkyWater Technology by 18.6% in the second quarter. Emerald Mutual Fund Advisers Trust now owns 714,144 shares of the company's stock valued at $7,027,000 after acquiring an additional 111,847 shares during the period. AQR Capital Management LLC grew its stake in SkyWater Technology by 112.0% in the first quarter. AQR Capital Management LLC now owns 313,993 shares of the company's stock valued at $2,226,000 after acquiring an additional 165,865 shares during the period. Finally, Lountzis Asset Management LLC boosted its position in shares of SkyWater Technology by 1.6% during the first quarter. Lountzis Asset Management LLC now owns 291,940 shares of the company's stock worth $2,146,000 after buying an additional 4,618 shares during the period. Institutional investors and hedge funds own 70.00% of the company's stock.

About SkyWater Technology

SkyWater Technology, Inc, together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits.

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