Skyworks stock hits 52-week low at $61.88 amid market challenges

Published 03/04/2025, 14:50
Skyworks stock hits 52-week low at $61.88 amid market challenges

Skyworks Solutions Inc . (NASDAQ:SWKS) stock has tumbled to a 52-week low, reaching $61.88 USD, with InvestingPro data showing the company maintains a "GOOD" financial health score despite the decline. The stock currently offers a 4.3% dividend yield. This significant downturn reflects a broader trend for the semiconductor company, which has seen its shares plummet by 37.4% over the past year. The decline in Skyworks’ stock price is indicative of the challenges faced by the tech sector, particularly within the semiconductor industry, as it navigates through supply chain disruptions, shifting consumer demand, and global economic uncertainties. According to InvestingPro analysis, the stock appears undervalued at current levels, with 14 analysts recently revising their earnings expectations upward for the upcoming period. Investors are closely monitoring the company’s performance and strategies for recovery as it hits this notable low point in its market valuation. InvestingPro subscribers can access 10 additional exclusive insights about Skyworks, including detailed analysis of its strong cash position and consistent dividend payment history spanning 12 years.

In other recent news, Skyworks Solutions has been in the spotlight with several notable developments. Fitch Ratings confirmed the company’s ’BBB+’ credit rating but revised the outlook from Stable to Negative, highlighting concerns over increasing competition in the radio frequency sector and Skyworks’ expected reduction in chip content for Apple (NASDAQ:AAPL)’s next-generation smartphones. This anticipated decline in business with Apple, a major customer, is expected to reduce Skyworks’ shipments by 20-25% in fiscal 2025. Meanwhile, Craig-Hallum lowered its price target for Skyworks to $85, maintaining a Buy rating, while TD Cowen reduced its target to $75 and kept a Hold rating, both citing the expected content loss with Apple as a significant factor.

Additionally, Skyworks announced a leadership change, promoting Reza Kasnavi to Executive Vice President, Chief Operations and Technology Officer, with a corresponding increase in salary and incentive eligibility. The company’s strategy to diversify revenue streams outside of smartphones, focusing on areas like datacenters and automotive applications, is seen as a potential growth avenue. Despite challenges, Skyworks has committed to a $2 billion stock buyback program, emphasizing its focus on shareholder value. The company’s strong liquidity position, supported by substantial cash reserves and an undrawn credit facility, provides a buffer against market uncertainties.

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