What the bad jobs report means for markets
Skyworks Solutions, Inc. (NASDAQ:SWKS) CEO and President, Philip G. Brace, has recently increased his stake in the company by acquiring 10,000 shares of common stock. The purchase, made on February 25, 2025, was executed at a weighted average price of $66.13 per share, resulting in a total transaction value of approximately $661,300. The shares were bought in multiple open market transactions with prices ranging from $66.10 to $66.15. Following this acquisition, Brace now holds a total of 10,000 shares directly.The timing of this insider purchase appears strategic, as InvestingPro data shows the stock trading near its 52-week low of $62.01, with technical indicators suggesting oversold conditions. The company, currently valued at $10.3 billion, maintains a strong balance sheet with more cash than debt and has consistently raised its dividend for 11 consecutive years. According to InvestingPro analysis, Skyworks Solutions is currently trading below its Fair Value, with 14 analysts recently revising their earnings estimates upward for the upcoming period.
In other recent news, Skyworks Solutions has been under the spotlight due to several noteworthy developments. Fitch Ratings confirmed Skyworks Solutions’ ’BBB+’ rating but revised the outlook from Stable to Negative, citing concerns about increased competition and a projected 20-25% reduction in chip content for Apple (NASDAQ:AAPL)’s next-generation iPhone. Analysts from Craig-Hallum and TD Cowen have adjusted their price targets for Skyworks, with Craig-Hallum lowering it to $85 while maintaining a Buy rating, and TD Cowen reducing it to $75 with a Hold rating. Loop Capital also cut its price target to $70, reflecting the anticipated annual sales decrease of $500 million to $550 million due to reduced iPhone content. KeyBanc Capital Markets maintained a Sector Weight rating after Skyworks reported earnings and guidance that met market expectations, despite the expected loss in market share for the iPhone 17.
Skyworks Solutions has announced a leadership change, with CEO Liam Griffin stepping down and Philip Brace set to take over. The company plans to continue investing to regain market share in future iPhone models. Despite the challenges, Skyworks remains committed to maintaining an EBITDA leverage target below 1.0x and has announced a $2 billion stock buyback program, signaling a focus on enhancing shareholder value. The company’s diversification into non-smartphone markets, such as datacenters and automotive applications, is expected to drive future growth.
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