Skyworks Solutions: 3 Different Insiders Have Sold Shares During The Last 30 Days

May. 8.14 | About: Skyworks Solutions, (SWKS)

Summary

3 insiders sold Skyworks stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

2 of these 3 insiders decreased their holdings by more than 10%.

Skyworks Solutions (NASDAQ:SWKS) provides analog semiconductors worldwide.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Mark Tremallo VP May 2-5 26,800 No 31,507 shares + 9,600 options 39.5%
David Aldrich CEO May 2 50,000 No 283,303 shares 15.0%
David McLachlan Director April 22-23 2,000 Yes 57,315 shares 3.4%
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There have been 78,800 shares sold by insiders during the last 30 days. David McLachlan 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 activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 76,800 0
April 2014 2,000 0
March 2014 140,000 0
February 2014 0 0
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 1,337,197 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Skyworks reported the fiscal 2014 second-quarter, which ended March 28, financial results on April 22 with the following highlights:

Revenue $481.0 million
Net income $76.9 million
Cash $797.8 million
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The three insiders sold their shares after these results.

Outlook

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

Revenue $535 million
Non-GAAP EPS $0.73
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Competition

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

Company SWKS ADI AVGO RFMD
Market Cap: 7.66B 15.80B 16.86B 2.48B
Employees: 4,750 9,100 4,800 N/A
Qtrly Rev Growth (yoy): 0.13 0.01 0.23 -0.09
Revenue: 1.90B 2.64B 2.65B 1.15B
Gross Margin: 0.44 0.65 0.51 0.35
EBITDA: 513.97M 908.12M 806.00M 100.95M
Operating Margin: 0.22 0.30 0.23 0.02
Net Income: 321.30M 694.85M 561.00M 12.64M
EPS: 1.68 2.20 2.22 0.04
P/E: 24.32 23.00 30.42 220.12
PEG (5 yr expected): 0.87 1.90 1.31 0.65
P/S: 4.08 6.01 6.34 2.16
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Skyworks has the second-lowest gross margin among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
ADI 0 484,211
AVGO 0 265,791
RFMD 0 281,759
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RF Micro 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 0.66%.

Before going short Skyworks, I would like to get a bearish confirmation from the Point & 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.