Reza Kasnavi, Senior Vice President of Technology and Manufacturing at Skyworks Solutions, Inc. (NASDAQ:SWKS), has recently sold shares of the company's stock valued at $269,080. The transactions, executed on November 11, involved selling a total of 3,059 shares at prices ranging from $87.52 to $88.33 per share. Following these sales, Kasnavi retains direct ownership of 19,802 shares.
In addition to the sales, Kasnavi also exercised options to acquire 4,732 shares of common stock. The acquisition was executed at no cost, as these shares were converted from restricted stock units.
The transactions were conducted as part of a pre-arranged trading plan under Rule 10b5-1, which Kasnavi adopted on May 15, 2024. This plan allows executives to set up a trading schedule for selling stocks to avoid any potential conflicts of interest.
In other recent news, Skyworks Solutions reported solid fourth-quarter results for the fiscal year 2024, with revenues of $1.025 billion, earnings per share of $1.55, and a significant free cash flow of $393 million. The company also experienced a 21% sequential growth in mobile revenue and generated over $1.6 billion in free cash flow for the second consecutive year. However, Piper Sandler, Mizuho (NYSE:MFG), and Rosenblatt Securities all reduced their price targets for Skyworks, citing near-term market challenges and uncertainties. Despite these adjustments, all firms maintained their respective ratings on the stock.
Skyworks Solutions anticipates Q1 FY2025 revenue to range from $1.05 billion to $1.08 billion, with a gross margin of 46%-47%. The company has been strategically investing in technology, focusing on AI, IoT, and Edge computing, to support long-term growth. These developments are part of recent trends in the company's operations and strategies.
The company's largest customer accounted for 69% of total revenue, with a projected sequential increase of 5% to 10%. Additionally, high inventory levels in networking infrastructure, automotive, and industrial sectors are reportedly impacting performance. Despite these challenges, Skyworks Solutions remains committed to long-term profitable growth and diversification. The company's management is also concentrating on strategic partnerships with major players like Google (NASDAQ:GOOGL) and Samsung (KS:005930) in the Android market.
InvestingPro Insights
While Skyworks Solutions' Senior Vice President of Technology and Manufacturing has recently sold shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, Skyworks Solutions has a market capitalization of $13.24 billion and is trading at a P/E ratio of 17.08, which suggests a relatively moderate valuation compared to some tech peers.
InvestingPro Tips highlight that Skyworks has maintained dividend payments for 11 consecutive years and has even raised its dividend for 10 consecutive years. This consistent dividend policy, coupled with a current dividend yield of 3.37%, may be attractive to income-focused investors despite the recent insider sale.
However, it's worth noting that analysts anticipate a sales decline in the current year, with revenue growth showing a negative 11.87% in the last twelve months. This aligns with the company's recent stock performance, as InvestingPro data shows a year-to-date price total return of -24.58%.
Despite these challenges, Skyworks operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating financial stability. Additionally, analysts predict the company will remain profitable this year, which could provide some reassurance to investors.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Skyworks Solutions, providing a deeper insight into the company's financial health and prospects.
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