The company reported better-than-expected fiscal second-quarter earnings and revenue
The shares of Skyworks Solutions Inc (NASDAQ:SWKS) are down 8.2% to trade at $181.57 at last check, despite better-than-expected fiscal second-quarter earnings and revenue, presumably due to its outlook. To follow, no fewer than six analysts have lifted their price targets, with Cowen and Company, Raymond James, and Craig-Hallum all hiking theirs to $220.
Today's drop has SWKS gapping away from its April 29, all-time high of $204. However, the $181 level, which stepped up as support over the past week, could serve as a floor during today's pullback. The 80-day moving average has also caught the stock's retreats since mid-December. Year-to-date, the equity is still up 18.6%.
Despite Skyworks stock's recent rally, there is still plenty of pessimism amongst analysts. More specifically, eight of the 19 analysts in coverage carry a tepid "hold" rating, with the remaining 11 a "buy" or better. Still, the 12-month consensus target price of $205.24 is a 13.2% premium to current levels.
Meanwhile, sentiment is more bearish than usual in the options pits. This is per SWKS' 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 88% of readings from the past year.
Echoing this is the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.71, which stands higher than 92% of readings from the past year. This means short-term options players have rarely been more put biased.