SkyWater Technology (NASDAQ:SKYT) Trading Down 9% - Here's Why

Key Points

• SkyWater Technology shares fell 9% during trading, dropping from a previous close of $16.59 to trade as low as $15.10.
• Equities analysts have mixed views on the stock, with Needham & Company raising its price target and giving a "buy" rating while Weiss Ratings maintained a "sell" rating.
• Recent insider trades include significant stock sales by CFO and Director, with over 3 million shares sold by insiders in the last 90 days, indicating a potential decrease in confidence among company leadership.

Shares of SkyWater Technology, Inc. (NASDAQ:SKYT - Get Free Report) were down 9% during mid-day trading on Friday . The stock traded as low as $15.28 and last traded at $15.10. Approximately 1,020,895 shares were traded during trading, an increase of 5% from the average daily volume of 975,909 shares. The stock had previously closed at $16.59.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on SKYT shares. Needham & Company LLC raised their price target on shares of SkyWater Technology from $11.00 to $15.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Wall Street Zen upgraded shares of SkyWater Technology from a "sell" rating to a "hold" rating in a report on Friday, September 5th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of SkyWater Technology in a report on Wednesday, October 8th. Three equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $13.00.

SkyWater Technology Trading Down 8.5%

The firm has a market cap of $731.18 million, a P/E ratio of -44.44 and a beta of 3.51. The company has a quick ratio of 0.97, a current ratio of 1.06 and a debt-to-equity ratio of 0.68. The firm's 50-day simple moving average is $14.03 and its 200 day simple moving average is $10.51.

Insiders Place Their Bets

In other news, CFO Steve Manko sold 60,829 shares of the business's stock in a transaction that occurred on Friday, September 26th. The shares were sold at an average price of $17.40, for a total value of $1,058,424.60. Following the sale, the chief financial officer owned 327,122 shares of the company's stock, valued at $5,691,922.80. The trade was a 15.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Loren A. Unterseher sold 120,370 shares of the stock in a transaction that occurred on Friday, September 26th. The stock was sold at an average price of $18.02, for a total transaction of $2,169,067.40. Following the completion of the sale, the director owned 6,811,256 shares in the company, valued at $122,738,833.12. This represents a 1.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 3,402,446 shares of company stock valued at $41,689,461. Company insiders own 37.85% of the company's stock.

Institutional Trading of SkyWater Technology

Several institutional investors and hedge funds have recently bought and sold shares of the company. CWM LLC lifted its stake in SkyWater Technology by 291.3% in the 3rd quarter. CWM LLC now owns 3,138 shares of the company's stock worth $59,000 after purchasing an additional 2,336 shares in the last quarter. Squarepoint Ops LLC lifted its stake in SkyWater Technology by 405.4% in the 2nd quarter. Squarepoint Ops LLC now owns 87,290 shares of the company's stock worth $859,000 after purchasing an additional 70,019 shares in the last quarter. Marex Group plc purchased a new stake in SkyWater Technology in the 2nd quarter worth approximately $206,000. Sugar Maple Asset Management LLC bought a new position in shares of SkyWater Technology in the 2nd quarter worth $253,000. Finally, BNP Paribas Financial Markets increased its holdings in shares of SkyWater Technology by 56.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,749 shares of the company's stock worth $27,000 after buying an additional 991 shares during the last quarter. 70.00% of the stock is currently owned by hedge funds and other institutional investors.

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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