Skyworks Stock Slips Despite Sunny Q2 Earnings

Plus, no fewer than six analysts lifted their price targets

Deputy Editor
Apr 30, 2021 at 10:42 AM
facebook twitter linkedin

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. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners