Carlos S. Bori, Senior Vice President of Sales and Marketing at Skyworks Solutions, Inc. (NASDAQ:SWKS), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Bori sold a total of 10,177 shares of common stock on October 14. The shares were sold at prices ranging from $97.16 to $97.98, amounting to a total transaction value of $993,615.
Following these transactions, Bori retains direct ownership of 27,026 shares of Skyworks Solutions. Additionally, he holds 1,738 shares indirectly through the company's 401(k) plan, as per the latest plan statement dated September 30, 2024. The transactions were conducted under a prearranged Rule 10b5-1 trading plan adopted on June 10, 2024.
In other recent news, Skyworks Solutions has undergone a series of significant developments. Barclays (LON:BARC) recently downgraded Skyworks Solutions' stock rating from Equal-weight to Underweight, citing anticipated challenges in the company's business operations and market performance. The firm also adjusted its price target for the stock down to $87.00 from the previous $115.00. This decision reflects skepticism regarding the company's unit sales and content gains, with financial performance projections falling below consensus estimates.
Skyworks Solutions, however, reported a robust performance for the third fiscal quarter of 2024, with revenue reaching $906 million and earnings per share standing at $1.21. The company also reported free cash flow of $249 million. For the fourth fiscal quarter of 2024, Skyworks Solutions estimates revenue between $1 billion and $1.04 billion. The company also raised its quarterly dividend by 3% to $0.70 per share.
Despite the downgrade by Barclays and challenges in the market, Skyworks Solutions remains optimistic about its future, expecting a multiyear smartphone upgrade cycle driven by generative AI, and anticipates the mobile market to normalize. The company also projects modest growth for the rest of the year and is optimistic about its design win pipeline, especially in the EV market.
InvestingPro Insights
To provide context to Carlos S. Bori's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Skyworks Solutions (NASDAQ:SWKS).
As of the latest data, Skyworks Solutions has a market capitalization of $15.72 billion. The company's P/E ratio stands at 20.15, suggesting a moderate valuation compared to industry peers. This valuation is further supported by an InvestingPro Tip indicating that the company's valuation implies a strong free cash flow yield.
Skyworks Solutions has demonstrated 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 2.85%. This consistent dividend growth, coupled with a high shareholder yield, may be attractive to income-focused investors.
Despite these positive indicators, it's worth noting that Skyworks Solutions has faced some headwinds. The company's revenue for the last twelve months as of Q3 2024 was $4.37 billion, representing a decline of 11.87% compared to the previous period. This aligns with another InvestingPro Tip suggesting that analysts anticipate a sales decline in the current year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 9 more tips available for Skyworks Solutions. These tips could provide valuable context for understanding the company's financial health and future prospects in light of the recent insider sale.
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