(VIANEWS) – Many are wondering why Skyworks Solutions stock is going down and it’s likely due to a variety of reasons. This company is a leader in high-performance analog semiconductors, but its stock price is not in line with its intrinsic value. The company’s shares are relatively volatile, and their movements are magnified relative to the rest of the market. This means that they’re more likely to fall than rise.
The company’s stock price has been on a downward trend since 2021. Before that, Skyworks’ shares were trading at high-teens earnings multiples.
The company’s reliance on Apple is one of its most significant factors. In fact, Apple accounts for 55% of its revenue. It’s hard to argue with the company’s growth, especially considering its dependence on Apple, which is one of the world’s most stable companies. However, analysts at UBS have cut Skyworks’ price target by 17%, and this has caused the stock price to fall.
After UBS reduced its price target for the stock by 17%, shares of Skyworks Solutions fell. UBS cut its price target after Apple unveiled a new iPhone 14 without Wi-Fi 6E (a faster type of Wi-Fi). TheFly reported that KeyBanc, an investment bank, stated that analysts had hoped Wi-Fi 6E could be integrated into the iPhone 14. Skyworks’s lack of Wi-Fi 6E in iPhone is a setback because it will slow down growth in the short term.
When a stock is falling, it’s important to consider the underlying fundamentals. While Skyworks Solutions Inc stock may have an excellent earnings record, its stock price could be dropping for a number of reasons. The company’s financials are healthy and the stock’s momentum is solid, but its stock price is lagging behind its peers.
About Skyworks Solutions
Skyworks Solutions, Inc., along with its subsidiaries, design, develops, produces, and markets proprietary semiconductor product including intellectual property throughout the United States, China, South Korea, Taiwan, Europe, Asia-Pacific, Europe, Asia, the Middle East, Africa, Taiwan, China, South Korea, Taiwan, Europe, Asia, Africa, Europe, Asia, South Korea, Taiwan, China, South Korea, Taiwan, Europe, Asia, Africa, Europe, Asia-Pacific, China, South Korea, Taiwan, Europe, Asia, Africa, Europe, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators, and regulators, as well as well as wells. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. Its products are available for industrial, medical and military use, as well as in connected homes, gaming, entertainment, gaming and mobile communications. The company sells products via a direct sales force and electronic component distributors. Independent sales reps also are available.
Return on Equity
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 27.67%.
Skyworks Solutions’s last close was $84.96, 51.21% under its 52-week high of $174.14.
Volatility
Skyworks Solutions’s last week, last month’s, and last quarter’s current intraday variation average was a positive 0.63%, a negative 0.54%, and a positive 2.02%, respectively.
Skyworks Solutions’s highest amplitude of average volatility was 1.03% (last week), 2.37% (last month), and 2.02% (last quarter), respectively.
Revenue Growth
Year-on-year quarterly revenue growth grew by 14%, now sitting on 5.27B for the twelve trailing months.
Dividend Yield
As claimed by Morningstar, Inc., the next dividend payment is on May 22, 2022, the estimated forward annual dividend rate is 2.24 and the estimated forward annual dividend yield is 2.06%.
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