Skyworks Solutions (NASDAQ:SWKS) Trading Down 15% – Time to Sell?

Skyworks Solutions, Inc. (NASDAQ:SWKS)’s share price dropped 15% during mid-day trading on Wednesday . The stock traded as low as $62.63 and last traded at $61.64. Approximately 1,338,649 shares were traded during mid-day trading, a decline of 63% from the average daily volume of 3,652,736 shares. The stock had previously closed at $72.56.

Key Headlines Impacting Skyworks Solutions

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

• Positive Sentiment: Several brokers raised their price targets on Skyworks Solutions, including Loop Capital, Craig Hallum, UBS, TD Cowen, KeyCorp, JPMorgan, Citi, BNP Paribas Exane, and others, with new targets mostly in the $70 to $85 range. Article Link
• Positive Sentiment: Skyworks recently beat second-quarter EPS estimates, which reinforced the view that earnings momentum may be improving and helped support bullish analyst forecasts. Article Link
• Neutral Sentiment: Analysts remain cautious overall despite the higher targets, with some firms still carrying neutral or hold ratings, signaling that upside expectations are not universally strong. Article Link
• Negative Sentiment: A shareholder litigation firm announced an investigation into possible fiduciary-duty breaches by Skyworks officers and directors, which could create legal overhang and weigh on sentiment. Article Link

Analysts Set New Price Targets

SWKS has been the subject of several research analyst reports. Royal Bank Of Canada upped their target price on shares of Skyworks Solutions from $65.00 to $72.00 and gave the company a “sector perform” rating in a report on Wednesday. Zacks Research cut shares of Skyworks Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, February 16th. Stifel Nicolaus upped their target price on shares of Skyworks Solutions from $65.00 to $75.00 and gave the company a “hold” rating in a report on Wednesday. Morgan Stanley upped their target price on shares of Skyworks Solutions from $69.00 to $76.00 and gave the company an “equal weight” rating in a report on Wednesday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Skyworks Solutions in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fifteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $76.61.

Skyworks Solutions Stock Performance

The stock has a market cap of $10.04 billion, a price-to-earnings ratio of 27.71 and a beta of 1.48. The stock’s 50 day moving average is $57.81 and its two-hundred day moving average is $62.43. The company has a current ratio of 2.38, a quick ratio of 1.80 and a debt-to-equity ratio of 0.09.

Skyworks Solutions (NASDAQ:SWKS) last issued its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.15 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.11. The firm had revenue of $943.70 million during the quarter, compared to analysts’ expectations of $901.76 million. Skyworks Solutions had a net margin of 8.93% and a return on equity of 11.52%. Skyworks Solutions’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.24 EPS. Skyworks Solutions has set its Q3 2026 guidance at 1.030-1.030 EPS. Analysts anticipate that Skyworks Solutions, Inc. will post 3.25 earnings per share for the current fiscal year.

Skyworks Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, May 26th will be paid a dividend of $0.71 per share. The ex-dividend date is Tuesday, May 26th. This represents a $2.84 dividend on an annualized basis and a yield of 4.3%. Skyworks Solutions’s dividend payout ratio is currently 117.84%.

Hedge Funds Weigh In On Skyworks Solutions

A number of large investors have recently bought and sold shares of SWKS. Pzena Investment Management LLC raised its position in Skyworks Solutions by 27.6% during the 1st quarter. Pzena Investment Management LLC now owns 16,108,138 shares of the semiconductor manufacturer’s stock worth $862,591,000 after buying an additional 3,481,658 shares during the last quarter. Norges Bank purchased a new position in Skyworks Solutions during the 4th quarter worth $121,304,000. FIL Ltd raised its position in Skyworks Solutions by 50.5% during the 4th quarter. FIL Ltd now owns 5,190,211 shares of the semiconductor manufacturer’s stock worth $329,111,000 after buying an additional 1,742,338 shares during the last quarter. Capital Research Global Investors purchased a new position in Skyworks Solutions during the 4th quarter worth $102,279,000. Finally, Vanguard Group Inc. raised its position in Skyworks Solutions by 4.9% during the 3rd quarter. Vanguard Group Inc. now owns 20,714,728 shares of the semiconductor manufacturer’s stock worth $1,594,620,000 after buying an additional 958,768 shares during the last quarter. Hedge funds and other institutional investors own 85.43% of the company’s stock.

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.