Skyworks Solutions: 3 Different Insiders Have Sold Shares This Year

Feb. 4.14 | About: Skyworks Solutions, (SWKS)

In this article, I will feature one tech stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Skyworks Solutions (NASDAQ:SWKS) offers analog and mixed signal semiconductors worldwide.

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Insider selling during the last 30 days

Here is a table of Skyworks' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
David Aldrich CEO Jan 2-29 225,919 Yes 332,723 shares 40.4%
Timothy Furey Director Jan 21 7,500 No 44,215 shares 14.5%
Liam Griffin EVP Jan 17 1,275 Yes

52,126 shares

2.4%
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There have been 234,694 shares sold by insiders during the last 30 days. David Aldrich and Liam Griffin sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Skyworks' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
January 2014 234,694 0
December 2013 210,824 0
November 2013 300,054 0
October 2013 51,112 0
September 2013 54,000 0
August 2013 161,885 0
July 2013 28,000 0
June 2013 28,000 0
May 2013 49,828 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 1,118,397 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Skyworks reported the fiscal 2014 first-quarter, which ended December 27, financial results on January 16 with the following highlights:

Revenue $505.2 million
Net income $94.5 million
Cash $648.6 million
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Outlook

Skyworks' fiscal 2014 second-quarter guidance is as follows:

Revenue $470 million
Non-GAAP EPS $0.59
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Competition

Skyworks' competitors include Analog Devices (NASDAQ:ADI), Avago Technologies (NASDAQ:AVGO), and Hittite Microwave (NASDAQ:HITT). Here is a table comparing these companies.

Company SWKS ADI AVGO HITT
Market Cap: 5.63B 15.01B 13.60B 1.76B
Employees: 4,750 9,200 4,800 486
Qtrly Rev Growth (yoy): 0.13 -0.02 0.19 0.02
Revenue: 1.79B 2.66B 2.52B 273.55M
Gross Margin: 0.43 0.64 0.50 0.73
EBITDA: 454.90M 902.91M 759.00M 121.88M
Operating Margin: 0.20 0.30 0.23 0.40
Net Income: 278.10M 644.65M 552.00M 72.10M
EPS: 1.45 2.09 2.19 2.32
P/E: 20.86 23.12 24.95 24.72
PEG (5 yr expected): 0.70 2.20 1.08 1.86
P/S: 3.09 5.77 5.44 6.43
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Skyworks has the lowest gross margin among these four companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
ADI 0 1,125,469
AVGO 0 586,863
HITT 0 80,292
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Analog Devices has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Skyworks, and there have not been any insiders buying Skyworks during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Skyworks has an insider ownership of 0.40%.

Before going short Skyworks, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.