Skyworks Solutions (SWKS) Stock Rating Upgraded by Zacks Investment Research
Zacks Investment Research upgraded shares of Skyworks Solutions (NASDAQ:SWKS) from a sell rating to a hold rating in a report 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 equities research analysts also recently issued reports on SWKS. BMO Capital Markets upgraded shares of Skyworks Solutions from a market perform rating to an outperform rating in a research note on Tuesday, February 6th. They noted that the move was a valuation call. Morgan Stanley increased their price objective on shares of Skyworks Solutions from $86.00 to $88.00 and gave the stock an underweight rating in a research note on Wednesday, December 13th. Drexel Hamilton reiterated a buy rating and set a $128.00 price objective (up from $120.00) on shares of Skyworks Solutions in a research note on Tuesday, November 7th. BidaskClub downgraded shares of Skyworks Solutions from a hold rating to a sell rating in a research note on Friday, December 29th. Finally, B. Riley reiterated a buy rating and set a $131.00 price objective on shares of Skyworks Solutions in a research note on Tuesday, November 7th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and twenty-four have issued a buy rating to the company. The company has an average rating of Buy and a consensus price target of $115.93.
Skyworks Solutions (NASDAQ:SWKS) last released its quarterly earnings results on Monday, February 5th. The semiconductor manufacturer reported $2.00 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.09. Skyworks Solutions had a net margin of 21.72% and a return on equity of 30.21%. The business had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.05 billion. During the same period last year, the firm earned $1.61 earnings per share. Skyworks Solutions’s revenue for the quarter was up 15.0% compared to the same quarter last year. equities analysts predict that Skyworks Solutions will post 6.67 EPS for the current fiscal year.
Skyworks Solutions announced that its board has approved a stock repurchase program on Monday, February 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 15th. Investors of record on Thursday, February 22nd will be given a dividend of $0.32 per share. The ex-dividend date of this dividend is Wednesday, February 21st. This represents a $1.28 annualized dividend and a yield of 1.25%. Skyworks Solutions’s dividend payout ratio is presently 29.02%.
In other Skyworks Solutions news, insider Peter L. Gammel sold 7,800 shares of the firm’s stock in a transaction that occurred on Wednesday, January 17th. The shares were sold at an average price of $100.60, for a total transaction of $784,680.00. Following the completion of the transaction, the insider now owns 12,680 shares in the company, valued at approximately $1,275,608. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Liam Griffin sold 15,059 shares of the firm’s stock in a transaction that occurred on Thursday, December 14th. The stock was sold at an average price of $95.09, for a total transaction of $1,431,960.31. Following the transaction, the insider now owns 62,359 shares of the company’s stock, valued at approximately $5,929,717.31. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 137,405 shares of company stock worth $14,462,209. 0.49% of the stock is owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in SWKS. Financial Engines Advisors L.L.C. bought a new position in Skyworks Solutions during the 3rd quarter worth approximately $126,000. WFG Advisors LP raised its holdings in Skyworks Solutions by 14.8% during the 2nd quarter. WFG Advisors LP now owns 1,326 shares of the semiconductor manufacturer’s stock worth $127,000 after purchasing an additional 171 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Skyworks Solutions during the 2nd quarter worth approximately $202,000. Round Table Services LLC bought a new position in Skyworks Solutions during the 3rd quarter worth approximately $204,000. Finally, Intact Investment Management Inc. bought a new position in Skyworks Solutions during the 3rd quarter worth approximately $204,000. Hedge funds and other institutional investors own 81.77% of the company’s stock.
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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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