Skyworks Solutions, Inc. (SWKS) Offer Superior Growth And Strong Momentum

On the technicals front, Skyworks Solutions, Inc. (NASDAQ:SWKS) overall has 64% Buy rating. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the SWKS’s short-term trajectory should know that short terms indicators for the stock averaged 80% Buy with an average daily trading volume over the past 20 days at 2315255 shares. SWKS stock has overall a 0.5% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 2347358 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 2320824 shares, is 33% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $80.88. Below this, the next support is placed in the zone of $79.93. Till the time, the SWKS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 69.27 on daily chart, which may remain a cause for concern. If the price breaks below $79.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $82.52 mark may result into a pull-back move towards $83.21 level.

Skyworks Solutions, Inc. (SWKS) is projected to climb by 6.92 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $100 price as 12-month high target. This represents a whopping 22.19 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $90, which represents a return potential of 9.97 percent when compared to the closing price of the stock of $81.84 on Monday, February 11. The lowest price target for the stock is $70 — slightly more than -14.47 percent from SWKS’s current share price.

Here’s a rundown of insider trading activity for sense of Skyworks Solutions, Inc. (NASDAQ:SWKS). The earliest insider trade took place on 02/08/2019. Aldrich David J parted with a total of 3 thousand shares of company at average share price of $81.05. The total for the sales was set at $243.15 thousand. After this transaction, the Director account balance stood at 221.07 thousand shares. The stock grew 0.97 percent since that insider sale. On 01/16/2019, Gammel Peter L, Chief Technology Officer, sold 2.65 thousand shares at a price per share of $68.45. This removed 181.53 thousand shares from the insider’s fortune and the stock saw a 19.56 percent rally in value since the news became public. This transaction left 16.46 thousand shares in the Chief Technology Officer account. On 11/02/2018, Director Aldrich David J performed a sale transaction worth $258.75 thousand. This sale at $86.25 each has eliminated 3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -5.11 percent decrease since the transaction was reported. The insider now is left with 162.21 thousand shares remaining in the account. Aldrich David J, who performs the Director job, sold 3 thousand shares for $261.42 thousand. The disposal occurred on 10/19/2018 was priced at $87.14 per share. The share price plunged -6.08 percent since the reporting date. Aldrich David J now left with a stake of 162.2 thousand SWKS stock worth $13.27 million after the insider selling.

SWKS shares accumulated 0.13 points or 0.16 percent on Monday to $81.84 with a light trade volume of 1.884 million shares. After opening the session at $81.83, the shares went as high as $82.25 and as low as $80.61, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.2 billion and now has 173.74 million shares outstanding. Skyworks Solutions, Inc. (SWKS) stock has gained 19.32 percent of market value in 21 trading days.

Analysts at Goldman upped their rating on shares of Skyworks Solutions, Inc. (NASDAQ:SWKS) from Neutral to Buy in their opinion released on February 06. Cowen analysts again handed out a Market Perform rating to SWKS stock but they lifted target price for the shares in a flash note to investors on February 06. The price target has been raised from $75 to $80. Cowen, analysts launched coverage of SWKS stock with a Market Perform rating, according to their flash note to investors on February 06. Analysts at B. Riley FBR are sticking to their Buy recommendation. However, on February 06, they lifted target price for these shares to $94 from $90. Analysts at B. Riley FBR, made their first call for the stock with a Buy rating, according to a research note that dated back to February 06.

SWKS stock has a trailing 3-year beta of 0.63, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $6.07 a share in the trailing twelve months. The stock’s value has surged 22.11 percent year to date (YTD) against a decline of -17.37 percent in 12 month’s time. The company’s shares still trade -29.44 percent away from its 1-year high of $115.98 and 36.14 percent up from 52-week low of $60.12. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Skyworks Solutions, Inc. (SWKS) are trading at a P/E ratio of 13.46 times earnings reported for the past 12 months. The industry SWKS operates in has an average P/E of 4113.29. Its P/E ratio went as low as 14.31X and as high as 23.25 over the 5-year span. Further, it is sporting a 3.75 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.54. 50.1 percent is the gross profit margin for Skyworks Solutions, Inc. and operating margin sits at 33.2 percent. Along with this, the net profit margin is 29.9 percent.

SWKS will be declaring its Q2 financial results on May 02. Analysts are forecasting revenue to suffer decline of -6.8 percent to $981M in the next fiscal quarter, while earnings are seen soaring by nearly -7.5 percent to $1.85 per share. History has shown that shares in Skyworks Solutions, Inc. have gone up on 23 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.94 per share, better than the $1.92, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $972M, worse than the $979M analysts expected. Earnings are estimated to increase by 17.2 percent this year, 12.07 percent next year and continue to increase by 11.18 percent annually for the next 5 years.