In a recent transaction involving Skyworks Solutions, Inc. (NASDAQ:SWKS), Senior Vice President, General Counsel & Secretary Terry Robert John executed a series of stock transactions. The most notable of these was the sale of 1,821 shares on November 8, 2024, at a price of $90.16 per share, amounting to a total of $164,181. This transaction was conducted as part of a pre-established Rule 10b5-1 trading plan.
Additionally, the filings reveal several other transactions. On November 7, 2024, Terry acquired 3,693 shares through the conversion of restricted stock units, and on November 8, 2024, he acquired another 3,632 shares in a similar manner. These acquisitions were made at no cost, as the restricted stock units convert into shares of common stock on a one-for-one basis.
The report also details transactions related to tax withholding obligations. On November 7, 2024, 1,872 shares were withheld at a price of $91.17 per share, and on November 8, 2024, 8,975 shares were withheld at a price of $89.16 per share. These transactions totaled $1,135,024.
Following these transactions, Terry Robert John holds 24,567 shares directly, with an additional 3,146 shares held indirectly through a 401(k) plan.
In other recent news, Skyworks Solutions, Inc. reported an impressive fourth-quarter earnings beat, with adjusted earnings per share of $1.55, surpassing the projected $1.52. The company's revenue for the quarter was in line with consensus expectations at $1.02 billion. The semiconductor company also reported a record 40% free cash flow margin for fiscal 2024.
Skyworks Solutions provided strong guidance for the first quarter of fiscal 2025, forecasting revenue between $1.05 billion and $1.08 billion, and adjusted earnings per share of $1.57 at the midpoint of the revenue range. This comes despite the EPS guidance falling short of the $1.69 analyst consensus.
CEO Liam K. Griffin expressed confidence in the company's future, particularly in the role of AI in driving demand for higher levels of RF complexity. The company also declared a quarterly dividend of $0.70 per share for the end of 2024.
In other business highlights, Skyworks secured 5G content for premium Android smartphones and expanded Wi-Fi 7 design wins with major networking companies. These are the latest developments for Skyworks Solutions, Inc.
InvestingPro Insights
To provide additional context to the recent insider transactions at Skyworks Solutions, Inc. (NASDAQ:SWKS), let's examine some key financial metrics and insights from InvestingPro.
Skyworks Solutions currently has a market capitalization of $13.91 billion, with a P/E ratio of 17.83. This valuation is particularly interesting when considering one of the InvestingPro Tips, which suggests that the company's valuation implies a strong free cash flow yield. This could indicate that the stock may be undervalued relative to its cash-generating capabilities.
Despite the recent insider sale, Skyworks has shown a commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 10 consecutive years, with a current dividend yield of 3.22%. This consistent dividend growth, coupled with a high shareholder yield, may be attractive to income-focused investors.
However, it's worth noting that analysts anticipate a sales decline in the current year, with revenue growth in the last twelve months at -11.87%. This aligns with the recent stock price performance, as Skyworks is currently trading near its 52-week low, with the price at 72.05% of its 52-week high.
On a positive note, 16 analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's near-term prospects. Additionally, Skyworks operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations, indicating a solid financial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Skyworks Solutions, providing a deeper understanding of the company's financial health and market position.
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