SkyWater Technology (NASDAQ:SKYT) Trading Down 7.1% – Should You Sell?

SkyWater Technology, Inc. (NASDAQ:SKYT)’s share price dropped 7.1% on Wednesday . The company traded as low as $31.55 and last traded at $32.3120. Approximately 1,561,663 shares traded hands during trading, a decline of 46% from the average daily volume of 2,874,534 shares. The stock had previously closed at $34.78.

Analyst Ratings Changes

A number of research analysts recently issued reports on SKYT shares. Stifel Nicolaus started coverage on SkyWater Technology in a report on Tuesday, October 21st. They issued a “buy” rating and a $25.00 target price for the company. Jefferies Financial Group raised SkyWater Technology to a “hold” rating in a research report on Tuesday, October 28th. TD Cowen reiterated a “buy” rating on shares of SkyWater Technology in a research note on Thursday, November 6th. Needham & Company LLC boosted their price objective on SkyWater Technology from $15.00 to $20.00 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SkyWater Technology in a report on Monday, December 29th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $21.50.

SkyWater Technology Stock Down 2.6%

The firm’s 50-day moving average price is $20.28 and its two-hundred day moving average price is $15.96. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 0.67. The firm has a market cap of $1.64 billion, a PE ratio of 13.14 and a beta of 3.49.

SkyWater Technology (NASDAQ:SKYT) last posted its earnings results on Wednesday, November 5th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.41. SkyWater Technology had a net margin of 36.36% and a negative return on equity of 4.96%. The firm had revenue of $150.74 million for the quarter, compared to the consensus estimate of $135.50 million. SkyWater Technology has set its Q4 2025 guidance at -0.080-0.040 EPS. As a group, equities research analysts expect that SkyWater Technology, Inc. will post -0.22 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Steve Manko sold 50,000 shares of the stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $17.40, for a total transaction of $870,000.00. Following the completion of the sale, the chief financial officer owned 277,122 shares in the company, valued at approximately $4,821,922.80. This represents a 15.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Thomas Sonderman sold 5,210 shares of the firm’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $13.38, for a total value of $69,709.80. Following the transaction, the chief executive officer directly owned 521,757 shares in the company, valued at approximately $6,981,108.66. This represents a 0.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 384,279 shares of company stock worth $5,759,943 in the last quarter. 37.85% of the stock is owned by insiders.

Institutional Trading of SkyWater Technology

Hedge funds have recently added to or reduced their stakes in the stock. Y Intercept Hong Kong Ltd purchased a new position in SkyWater Technology in the second quarter valued at about $243,000. Emerald Advisers LLC boosted its stake in shares of SkyWater Technology by 36.2% during the 2nd quarter. Emerald Advisers LLC now owns 1,362,983 shares of the company’s stock worth $13,412,000 after acquiring an additional 362,267 shares in the last quarter. Squarepoint Ops LLC grew its holdings in shares of 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 acquiring an additional 70,019 shares during the period. Emerald Mutual Fund Advisers Trust increased its stake in SkyWater Technology by 18.6% in the 2nd quarter. Emerald Mutual Fund Advisers Trust now owns 714,144 shares of the company’s stock valued at $7,027,000 after purchasing an additional 111,847 shares in the last quarter. Finally, Pekin Hardy Strauss Inc. purchased a new position in SkyWater Technology in the 2nd quarter valued at approximately $276,000. 70.00% of the stock is owned by institutional investors and hedge funds.

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.