Analyst Downgrades: Ambarella, RF Micro Devices, Skyworks

Analysts downwardly revised their ratings on AMBA, RFMD, and SWKS

Dec 29, 2014 at 9:10 AM

Analysts are weighing in today on semiconductor names Ambarella Inc (NASDAQ:AMBA), RF Micro Devices, Inc. (NASDAQ:RFMD), and Skyworks Solutions Inc (NASDAQ:SWKS). Here's a quick roundup of today's bearish brokerage notes on AMBA, RFMD, and SWKS.

AMBA, which is best known for supplying video-processing chips to Wall Street newcomer GoPro Inc (NASDAQ:GPRO), soared 7.5% on Friday to settle at $55.94 -- bringing its year-to-date gain just north of 65%. However, the shares got hit this morning with a downgrade to "underperform" from "hold" at Needham, which cited lower gross margin expectations and a possible slowdown in revenue growth late next year. As such, Ambarella Inc is off nearly 5% ahead of the bell. This is likely music to the ears of short sellers. AMBA's short interest level rose 17% during the two most recent reporting periods, and now 28.5% of its float is dedicated to short interest. However, at the equity's typical daily trading rate, it would take fewer than three sessions to cover these bearish bets.

Needham also lowered its opinion on RFMD, cutting the stock to "hold" from "buy" despite its 224% year-over-year advance to rest at $16.73. As a result, the shares are pointed 1.4% lower in electronic trading. More broadly speaking, the brokerage bunch is bullish toward RF Micro Devices, Inc. Nine out of 13 covering analysts rate the security a "buy" or better. What's more, RFMD's consensus 12-month price target of $17.37 stands at a premium to the stock's 12-year high of $16.76, touched on Friday.

Finally, SWKS saw its rating reduced to "hold" from "buy" at Needham, as well. This, despite the shares' nearly 161% year-to-date advance to trade at $74.49. In the options pits, traders have displayed optimism toward Skyworks Solutions Inc. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 5.60 ranks in the 83rd percentile of its annual range. Ahead of the bell, SWKS is sitting 2% lower.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.