SkyWater Technology (NASDAQ:SKYT) Trading Up 8.7% - Here's What Happened

Key Points

• Shares rose 8.7% on Tuesday, last trading around $31.64 with about 943,226 shares changing hands—roughly 51% below the stock's average daily volume.
• Analysts are mixed but cautious: SkyWater has a consensus rating of "Reduce" with a $32 consensus target (1 Buy, 5 Hold, 2 Sell), though several firms recently adjusted ratings and targets.
• The company beat revenue estimates ($171.0M vs. $160.1M, +13.5% YoY) but missed on EPS (‑$0.03 vs. ‑$0.01), and CFO Steve Manko sold 91,109 shares (~$2.54M), cutting his stake by about 29.8%.

SkyWater Technology, Inc. (NASDAQ:SKYT - Get Free Report)'s stock price rose 8.7% during trading on Tuesday . The stock traded as high as $30.84 and last traded at $31.6370. Approximately 943,226 shares changed hands during trading, a decline of 51% from the average daily volume of 1,925,032 shares. The stock had previously closed at $29.10.

Analysts Set New Price Targets

SKYT has been the subject of several analyst reports. Needham & Company LLC downgraded shares of SkyWater Technology from a "buy" rating to a "hold" rating in a research note on Monday, January 26th. TD Cowen downgraded SkyWater Technology from a "buy" rating to a "hold" rating and lifted their target price for the stock from $24.00 to $35.00 in a report on Tuesday, January 27th. Weiss Ratings reissued a "sell (e+)" rating on shares of SkyWater Technology in a research note on Friday, March 27th. Zacks Research lowered SkyWater Technology from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 4th. Finally, Piper Sandler lowered shares of SkyWater Technology from an "overweight" rating to a "neutral" rating and raised their price target for the stock from $17.00 to $35.00 in a report on Monday, January 26th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, SkyWater Technology presently has a consensus rating of "Reduce" and a consensus target price of $32.00.

SkyWater Technology Stock Performance

The stock has a fifty day simple moving average of $28.68 and a two-hundred day simple moving average of $23.44. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.52 and a current ratio of 0.60. The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of 12.68 and a beta of 3.47.

SkyWater Technology (NASDAQ:SKYT - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.02). SkyWater Technology had a net margin of 26.90% and a negative return on equity of 6.89%. The business had revenue of $171.04 million during the quarter, compared to analyst estimates of $160.05 million. During the same period in the prior year, the firm earned $0.04 earnings per share. The firm's revenue for the quarter was up 13.5% compared to the same quarter last year. Analysts forecast that SkyWater Technology, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Steve Manko sold 91,109 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $27.84, for a total transaction of $2,536,474.56. Following the completion of the sale, the chief financial officer owned 215,166 shares of the company's stock, valued at $5,990,221.44. This trade represents a 29.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 37.85% of the company's stock.

Institutional Investors Weigh In On SkyWater Technology

Several hedge funds and other institutional investors have recently bought and sold shares of SKYT. Vanguard Group Inc. grew its stake in shares of SkyWater Technology by 4.9% in the 3rd quarter. Vanguard Group Inc. now owns 2,047,168 shares of the company's stock valued at $38,200,000 after buying an additional 94,948 shares during the period. Ameriprise Financial Inc. grew its stake in SkyWater Technology by 9.1% in the third quarter. Ameriprise Financial Inc. now owns 1,846,355 shares of the company's stock valued at $34,453,000 after acquiring an additional 153,299 shares during the period. Erste Asset Management GmbH increased its holdings in shares of SkyWater Technology by 21.7% during the third quarter. Erste Asset Management GmbH now owns 1,400,000 shares of the company's stock valued at $25,508,000 after acquiring an additional 250,000 shares in the last quarter. State Street Corp raised its position in shares of SkyWater Technology by 134.1% during the fourth quarter. State Street Corp now owns 1,210,673 shares of the company's stock worth $21,986,000 after purchasing an additional 693,470 shares during the period. Finally, Millennium Management LLC lifted its holdings in shares of SkyWater Technology by 3,396.4% in the 3rd quarter. Millennium Management LLC now owns 775,364 shares of the company's stock worth $14,468,000 after purchasing an additional 753,188 shares in the last quarter. 70.00% of the stock is owned by 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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