Skyworks Solutions (NASDAQ:SWKS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Skyworks is a designer as well as a manufacturer of high performance analog and mixed signal semiconductors. The company reported impressive first-quarter fiscal 2018 results wherein earnings surpassed the Zacks Consensus Estimate while revenues were in-line with the same. The emergence of connected homes, autonomous vehicles, artificial intelligence (AI), augmented reality, wearables and network infrastructure are driving growth for the company. The company is expected to benefit from strong demand for Wi-Fi, Zigbee and LTE solutions. We believe Skyworks’ expanding product portfolio and strong product adoption is a key positive. Nonetheless, we remain concerned about escalating operating expenses which may negatively impact its margins in the near-term. Moreover, significant pricing pressure and high concentration risks are other headwinds. Notably, Skyworks has underperformed the industry in the last one year.”
A number of other research analysts have also recently commented on SWKS. Barclays increased their target price on shares of Skyworks Solutions from $110.00 to $120.00 and gave the stock an “overweight” rating in a report on Wednesday, October 18th. Vetr cut shares of Skyworks Solutions from a “buy” rating to a “hold” rating and set a $114.92 target price for the company. in a report on Monday, October 30th. BMO Capital Markets reiterated a “hold” rating and issued a $100.00 price objective on shares of Skyworks Solutions in a report on Monday, November 6th. DA Davidson reiterated a “buy” rating and issued a $130.00 price objective on shares of Skyworks Solutions in a report on Tuesday, November 7th. Finally, Drexel Hamilton reiterated a “buy” rating and issued a $128.00 price objective (up previously from $120.00) on shares of Skyworks Solutions in a report on Tuesday, November 7th. Three research analysts have rated the stock with a sell rating, four have assigned a hold rating and twenty-four have assigned a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $115.93.
Skyworks Solutions (NASDAQ:SWKS) last posted its earnings results on Monday, November 6th. The semiconductor manufacturer reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $1.64 by $0.05. The firm had revenue of $984.60 million during the quarter, compared to analysts’ expectations of $980.58 million. Skyworks Solutions had a net margin of 21.72% and a return on equity of 30.21%. analysts predict that Skyworks Solutions will post 6.64 earnings per share for the current fiscal year.
Skyworks Solutions announced that its Board of Directors has approved a stock repurchase program on Monday, February 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to buy shares of its stock through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.
In other news, SVP Robert John Terry sold 7,986 shares of the firm’s stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $110.32, for a total transaction of $881,015.52. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Carlos S. Bori sold 2,151 shares of the firm’s stock in a transaction that occurred on Wednesday, November 29th. The stock was sold at an average price of $107.20, for a total transaction of $230,587.20. Following the sale, the senior vice president now directly owns 9,372 shares of the company’s stock, valued at approximately $1,004,678.40. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 157,523 shares of company stock valued at $16,684,175. Insiders own 0.49% of the company’s stock.
Several hedge funds have recently made changes to their positions in SWKS. Thrivent Financial For Lutherans grew its position in shares of Skyworks Solutions by 2.5% during the 2nd quarter. Thrivent Financial For Lutherans now owns 6,960 shares of the semiconductor manufacturer’s stock worth $668,000 after buying an additional 170 shares during the period. Numeric Investors LLC bought a new position in shares of Skyworks Solutions in the 2nd quarter worth $345,000. Macquarie Group Ltd. lifted its holdings in shares of Skyworks Solutions by 68.9% in the 2nd quarter. Macquarie Group Ltd. now owns 27,200 shares of the semiconductor manufacturer’s stock worth $2,609,000 after purchasing an additional 11,100 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Skyworks Solutions by 765.4% in the 2nd quarter. Janus Henderson Group PLC now owns 232,209 shares of the semiconductor manufacturer’s stock worth $22,280,000 after purchasing an additional 205,377 shares in the last quarter. Finally, Caxton Associates LP bought a new position in shares of Skyworks Solutions in the 2nd quarter worth $393,000. 81.77% of the stock is owned by institutional investors.
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About Skyworks Solutions
Skyworks Solutions Inc designs, develops, manufactures and markets semiconductor products, including intellectual property. The Company’s analog semiconductors are connecting people, places, and things, spanning a number of new and unimagined applications within the automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets.
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