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

Key Points

• Skyworks shares fell sharply after Citigroup cut its price target from $77 to $64 while maintaining a neutral rating; the stock opened at $58.59 versus a prior close of $64.68.
• Fiscal Q3 results exceeded expectations, with revenue of $934.8 million and adjusted EPS of $1.08, while Q4 EPS guidance of $1.27 topped consensus. However, revenue declined 3.1% year over year and earnings fell from $1.33 a year earlier.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average target of $75.50. The proposed Qorvo combination and $2 billion share-repurchase authorization offer potential upside, but financing, regulatory and integration risks remain.

Skyworks Solutions, Inc. (NASDAQ:SWKS - Get Free Report) shares gapped down prior to trading on Wednesday after Citigroup lowered their price target on the stock from $77.00 to $64.00. The stock had previously closed at $64.68, but opened at $58.59. Citigroup currently has a neutral rating on the stock. Skyworks Solutions shares last traded at $60.0940, with a volume of 2,453,515 shares traded.

SWKS has been the subject of a number of other reports. TD Cowen boosted their target price on shares of Skyworks Solutions from $65.00 to $75.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. BNP Paribas Exane raised their price target on shares of Skyworks Solutions from $60.00 to $70.00 in a research note on Wednesday, May 6th. UBS Group lifted their price objective on shares of Skyworks Solutions from $63.00 to $75.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. B. Riley Financial boosted their price objective on shares of Skyworks Solutions from $60.00 to $68.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Finally, Bank of America restated an "underperform" rating and issued a $65.00 target price on shares of Skyworks Solutions in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, sixteen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $75.50.

Key Skyworks Solutions News

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

• Positive Sentiment: Skyworks reported fiscal Q3 revenue of $934.8 million and non-GAAP diluted EPS of $1.08, beating analyst expectations of approximately $926 million and $1.03, respectively. Automotive and data-center markets were cited as growth drivers. Skyworks fiscal third-quarter results
• Positive Sentiment: Fiscal Q4 EPS guidance of $1.27 is above the $1.23 consensus estimate, while revenue guidance of $1.0 billion to $1.1 billion is broadly in line with expectations, suggesting near-term earnings support. Skyworks Q3 earnings call highlights
• Positive Sentiment: The company authorized a new $2 billion share-repurchase program, which could support per-share results and signals confidence in its capital position. Skyworks also announced expected leadership appointments for the combined Skyworks-Qorvo business. Skyworks and Qorvo leadership announcement
• Neutral Sentiment: Regulatory approvals for the Qorvo transaction are progressing, but Skyworks expects to raise roughly $2 billion in acquisition debt financing. The deal could expand scale and product capabilities, though integration, financing and approval risks remain. Skyworks Qorvo combination update
• Negative Sentiment: Revenue fell 3.1% year over year and EPS declined from $1.33 in the prior-year quarter, highlighting continued pressure in parts of Skyworks’ wireless and communications markets.
• Negative Sentiment: Morgan Stanley maintained a Hold rating but cut its price target to $72, citing the dividend suspension and mixed end-market trends. The dividend suspension removes an important income component for shareholders and weighs on sentiment. Morgan Stanley Skyworks price-target update

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Jackson Creek Investment Advisors LLC acquired a new position in shares of Skyworks Solutions during the fourth quarter worth $1,388,000. AlphaQuest LLC boosted its position in shares of Skyworks Solutions by 662.4% in the 4th quarter. AlphaQuest LLC now owns 53,355 shares of the semiconductor manufacturer's stock worth $3,383,000 after purchasing an additional 46,357 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Skyworks Solutions by 1.9% in the 4th quarter. Vanguard Group Inc. now owns 21,103,896 shares of the semiconductor manufacturer's stock worth $1,338,198,000 after purchasing an additional 389,168 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its stake in Skyworks Solutions by 1,718.1% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 125,830 shares of the semiconductor manufacturer's stock worth $7,980,000 after buying an additional 118,909 shares during the last quarter. Finally, OFI Invest Asset Management acquired a new position in Skyworks Solutions during the 4th quarter valued at about $19,403,000. 85.43% of the stock is currently owned by hedge funds and other institutional investors.

Skyworks Solutions Stock Down 4.9%

The company has a 50-day moving average of $69.21 and a 200-day moving average of $62.83. The company has a current ratio of 2.38, a quick ratio of 1.70 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $9.25 billion, a price-to-earnings ratio of 25.53 and a beta of 1.50.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The semiconductor manufacturer reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.05. Skyworks Solutions had a return on equity of 11.52% and a net margin of 8.93%.The business had revenue of $934.80 million during the quarter, compared to the consensus estimate of $925.97 million. During the same quarter last year, the company earned $1.33 earnings per share. The company's quarterly revenue was down 3.1% on a year-over-year basis. Skyworks Solutions has set its Q4 2026 guidance at 1.270-1.270 EPS. On average, equities analysts predict that Skyworks Solutions, Inc. will post 3.62 earnings per share for the current fiscal year.

Skyworks Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, May 26th were paid a $0.71 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $2.84 dividend on an annualized basis and a yield of 4.6%. Skyworks Solutions's dividend payout ratio (DPR) is 117.84%.

Skyworks Solutions Company Profile

Skyworks Solutions, Inc is a leading semiconductor company that designs and manufactures analog and mixed-signal semiconductors for use in radio frequency (RF) and mobile communications markets. The company's portfolio includes power amplifiers, front-end modules, switches, filters, low-noise amplifiers, and other components that enable wireless connectivity in smartphones, tablets, wearables, automotive telematics, and broadband infrastructure. With a focus on energy efficiency and integration, Skyworks serves a broad range of customers in the mobile, Internet of Things (IoT), automotive, connected home, and industrial end markets.

Headquartered in Irvine, California, Skyworks operates a network of design, development, and manufacturing facilities across North America, Europe, and the Asia-Pacific region.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.