Analyst Downgrades: Ambarella, RF Micro Devices, Skyworks

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

by Alex Eppstein

Published on Dec 29, 2014 at 9:10 AM
Updated on Jul 2, 2020 at 1:24 PM

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.

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