Skyworks Solutions, Inc. (NASDAQ:SWKS) VP of Corporate Controller, Philip Matthew Carter, has recently sold a total of 452 shares of the company's common stock, according to the latest SEC filings. The transaction, which took place on July 10, 2024, was executed at a price of $110 per share, resulting in a total value of $49,720.
The sale was carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Carter had adopted on December 14, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal way to manage stock transactions without violating insider trading laws.
Following the transaction, Carter's (NYSE:CRI) direct holdings in Skyworks Solutions have decreased, yet he still owns a significant number of shares. The SEC filing indicates that Carter now directly owns 9,564 shares of the company's stock. Additionally, the filing includes a footnote stating that Carter's total ownership includes 220 shares that were purchased through the Skyworks Solutions, Inc. 2002 Employee Stock Purchase Plan on January 31, 2024.
Moreover, Carter also has an indirect stake in the company through his 401(k) plan. As of the latest plan statement dated June 30, 2024, he holds 533 shares of Skyworks Solutions in this account.
The sale by Carter comes at a time when investors are closely monitoring insider transactions for insights into company executives' perspectives on their firm's stock performance and future prospects. Skyworks Solutions, a leading innovator in semiconductor solutions, continues to be a significant player in the technology sector, with its components being critical for various applications in the wireless industry.
Investors and market watchers often look to such insider sales and purchases as signals of confidence or concern from management about the company's future. However, it is important to note that insider transactions can be motivated by a variety of factors and may not always be indicative of the company's operational performance.
The attorney-in-fact for Philip Matthew Carter, Ashran Jen, signed the SEC filing on his behalf on July 12, 2024. As is standard practice, the filing provides a transparent record of the transaction for regulatory purposes and public scrutiny.
In other recent news, Skyworks Solutions has seen a flurry of activity from analysts. B.Riley upgraded Skyworks Solutions from Neutral to Buy, citing renewed confidence in the company's sales and earnings per share growth. This optimism is contrasted by Wolfe Research's downgrade from Outperform to Peer Perform, due to concerns about the company's loss of iPhone content.
Skyworks Solutions has also been subject to price target revisions. Citi maintained its Sell rating but reduced the price target from $85 to $83, highlighting concerns about the company's reliance on Apple (NASDAQ:AAPL) and the competitive landscape in China. Piper Sandler reduced its price target to $95 from $105 due to challenges in the mobile demand sector, but maintains a Neutral rating.
Rosenblatt Securities and Mizuho also adjusted their outlook on Skyworks, reducing their price targets to $120 and $115 respectively. Both firms maintained their Buy ratings despite acknowledging the headwinds facing the company, particularly in relation to Apple. All these are recent developments that investors should be aware of.
InvestingPro Insights
As Skyworks Solutions (NASDAQ:SWKS) continues to navigate the semiconductor industry landscape, recent insider trading activity has drawn attention to the company's stock performance. Philip Matthew Carter's sale of shares has coincided with the stock trading near its 52-week high, with the price per share reaching 97.1% of this peak, according to InvestingPro data. This could be a sign of confidence from the executive in the company's current valuation, despite the divestment.
The company's commitment to shareholder returns is evidenced by its impressive track record of raising its dividend for 11 consecutive years, a noteworthy highlight for income-focused investors. Furthermore, Skyworks Solutions boasts a strong balance sheet, with liquid assets surpassing short-term obligations, as indicated by InvestingPro Tips. This financial stability is a crucial factor for investors considering the inherent volatility in the tech sector.
InvestingPro data reflects a mixed financial picture for Skyworks Solutions in the recent fiscal period. While the company's market capitalization stands at a robust 18.04 billion USD, it has experienced a revenue growth decline of 11.41% over the last twelve months as of Q2 2024. Despite this, the company maintains a healthy gross profit margin of 41.19%, underscoring its ability to manage costs effectively.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which could provide further insights into Skyworks Solutions' performance and outlook. For those interested in leveraging this information, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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