Adversity is less terrifying than hope: Skyworks Solutions Inc. (SWKS)

Skyworks Solutions Inc. (NASDAQ: SWKS) stock fell -0.39% on Friday to $97.76 against a previous-day closing price of $98.14. With 1.71 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.86 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $102.26 whereas the lowest price it dropped to was $97.72. The 52-week range on SWKS shows that it touched its highest point at $175.44 and its lowest point at $88.76 during that stretch. It currently has a 1-year price target of $136.83. With its current market cap of 15.74 billion, SWKS has annualized dividend of $2.48 while the current yield stands at 2.54%. Beta for the stock currently stands at 1.21.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SWKS was down-trending over the past week, with a drop of -2.25%, but this was down by -5.88% over a month. Three-month performance surged to 5.87% while six-month performance fell -28.91%. The stock lost -42.78% in the past year, while it has lost -36.99% so far this year. A look at the trailing 12-month EPS for SWKS yields 7.87 with Next year EPS estimates of 11.54. For the next quarter, that number is 2.91. This implies an EPS growth rate of 87.00% for this year and 4.28% for next year. EPS is expected to grow by 9.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.60%.

Float and Shares Shorts:

At present, 160.90 million SWKS shares are outstanding with a float of 159.86 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.09 million, which was 1.92% higher than short shares on Jun 14, 2022. In addition to Mr. Liam K. Griffin as the firm’s CEO, Pres & Chairman, Mr. Kris Sennesael serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 76.48% of SWKS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.93% of SWKS, in contrast to 37.78% held by mutual funds. Shares owned by individuals account for 1.02%. As the largest shareholder in SWKS with 10.74% of the stake, The Vanguard Group, Inc. holds 17,235,031 shares worth 17,235,031. A second-largest stockholder of SWKS, BlackRock Fund Advisors, holds 9,840,816 shares, controlling over 6.13% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SWKS, holding 7,287,838 shares or 4.54% stake. With a 2.97% stake in SWKS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,764,399 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of SWKS stock, is the second-largest Mutual Fund holder. It holds 3,694,966 shares valued at 364.14 million. Vanguard 500 Index Fund holds 2.24% of the stake in SWKS, owning 3,590,275 shares worth 353.82 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SWKS since 28 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SWKS analysts setting a high price target of $190.00 and a low target of $105.00, the average target price over the next 12 months is $131.46. Based on these targets, SWKS could surge 94.35% to reach the target high and rise by 7.41% to reach the target low. Reaching the average price target will result in a growth of 34.47% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SWKS will report FY 2022 earnings on 11/03/2022. Analysts have provided yearly estimates in a range of $11.16 being high and $10.96 being low. For SWKS, this leads to a yearly average estimate of $11.11. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Skyworks Solutions Inc. surprised analysts by $0.09 when it reported $2.44 EPS against a consensus estimate of $2.35. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $2.96 and the low estimate is $2.75. The average estimate for the next quarter is thus $2.90.

Dividends & Yield:

In terms of dividends, SWKS has a current ratio of $2.48, which is $2.48 over the trailing 12-months, while a dividend of $1.69 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SWKS currently yields $2.35. In the past year, SWKS’s dividend yield has been $2.35, but when looking at the stock over the past five years, its yield has been $1.51. Accordingly, SWKS has a current buyback yield of $5.7. This was $5.7 for the TTM, and it was $3.51 for the past five years.

Summary of Insider Activity:

Insiders traded SWKS stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 502 shares were bought while 5,858 shares were sold. The number of buy transactions has increased to 49 while that of sell transactions has risen to 77 over the past year. The total number of shares bought during that period was 367,484 while 309,141 shares were sold.

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