Skyworks Solutions (SWKS) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Skyworks Solutions (NASDAQ:SWKS) from a sell rating to a hold rating in a research note published on Friday morning.

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.”

SWKS has been the topic of a number of other research reports. B. Riley restated a buy rating and issued a $131.00 price objective on shares of Skyworks Solutions in a research report on Tuesday, November 7th. Piper Jaffray Companies restated a buy rating and issued a $115.00 price objective on shares of Skyworks Solutions in a research report on Wednesday, December 27th. BidaskClub cut shares of Skyworks Solutions from a hold rating to a sell rating in a research report on Friday, December 29th. Canaccord Genuity restated a buy rating and issued a $115.00 price objective on shares of Skyworks Solutions in a research report on Wednesday, January 24th. Finally, Barclays boosted their price objective on shares of Skyworks Solutions from $110.00 to $120.00 and gave the company an overweight rating in a research report on Wednesday, October 18th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and twenty-four have issued a buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $115.93.

Skyworks Solutions (NASDAQ SWKS) opened at $104.10 on Friday. Skyworks Solutions has a 52-week low of $90.53 and a 52-week high of $117.65. The stock has a market cap of $19,130.00, a PE ratio of 23.61, a price-to-earnings-growth ratio of 1.02 and a beta of 0.69.

Skyworks Solutions (NASDAQ:SWKS) last released its quarterly earnings data on Monday, February 5th. The semiconductor manufacturer reported $2.00 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.05 billion. During the same quarter in the previous year, the company earned $1.61 earnings per share. The company’s revenue for the quarter was up 15.0% compared to the same quarter last year. analysts forecast that Skyworks Solutions will post 6.67 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Shareholders of record on Thursday, February 22nd will be issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date is Wednesday, February 21st. Skyworks Solutions’s dividend payout ratio (DPR) is presently 29.02%.

Skyworks Solutions announced that its Board of Directors has authorized a share buyback program on Monday, February 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to buy shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

In other news, SVP Carlos S. Bori sold 4,377 shares of the company’s stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $108.30, for a total value of $474,029.10. Following the transaction, the senior vice president now owns 17,645 shares in the company, valued at $1,910,953.50. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Carlos S. Bori sold 2,151 shares of the company’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 completion of the transaction, the senior vice president now owns 9,372 shares in the company, valued at approximately $1,004,678.40. The disclosure for this sale can be found here. In the last 90 days, insiders sold 137,405 shares of company stock worth $14,462,209. Corporate insiders own 0.49% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. lifted its stake in shares of Skyworks Solutions by 8.9% in the fourth quarter. BlackRock Inc. now owns 13,206,360 shares of the semiconductor manufacturer’s stock worth $1,253,946,000 after buying an additional 1,076,214 shares in the last quarter. Manning & Napier Advisors LLC lifted its stake in shares of Skyworks Solutions by 9.3% in the third quarter. Manning & Napier Advisors LLC now owns 2,190,222 shares of the semiconductor manufacturer’s stock worth $223,182,000 after buying an additional 186,077 shares in the last quarter. Old Mutual Global Investors UK Ltd. lifted its stake in shares of Skyworks Solutions by 15.9% in the fourth quarter. Old Mutual Global Investors UK Ltd. now owns 1,936,981 shares of the semiconductor manufacturer’s stock worth $183,916,000 after buying an additional 266,106 shares in the last quarter. APG Asset Management N.V. lifted its stake in shares of Skyworks Solutions by 17.2% in the fourth quarter. APG Asset Management N.V. now owns 1,508,526 shares of the semiconductor manufacturer’s stock worth $119,283,000 after buying an additional 221,587 shares in the last quarter. Finally, UBS Asset Management Americas Inc. lifted its stake in shares of Skyworks Solutions by 9.9% in the fourth quarter. UBS Asset Management Americas Inc. now owns 1,154,621 shares of the semiconductor manufacturer’s stock worth $109,631,000 after buying an additional 104,083 shares in the last quarter. Hedge funds and other institutional investors own 81.22% of the company’s stock.

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Skyworks Solutions Company Profile

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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