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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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Mark TremalloVPMay 2-526,800No31,507 shares + 9,600 options39.5%
David AldrichCEOMay 250,000No283,303 shares15.0%
David McLachlanDirectorApril 22-232,000Yes57,315 shares3.4%

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.

MonthInsider selling / sharesInsider buying / shares
May 201476,8000
April 20142,0000
March 2014140,0000
February 201400
January 2014234,6940
December 2013210,8240
November 2013300,0540
October 201351,1120
September 201354,0000
August 2013161,8850
July 201328,0000
June 201328,0000
May 201349,8280
April 201300
March 201300
February 201300
January 201300

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

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

Competition

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

CompanySWKSADIAVGORFMD
Market Cap:7.66B15.80B16.86B2.48B
Employees:4,7509,1004,800N/A
Qtrly Rev Growth (yoy):0.130.010.23-0.09
Revenue:1.90B2.64B2.65B1.15B
Gross Margin:0.440.650.510.35
EBITDA:513.97M908.12M806.00M100.95M
Operating Margin:0.220.300.230.02
Net Income:321.30M694.85M561.00M12.64M
EPS:1.682.202.220.04
P/E:24.3223.0030.42220.12
PEG (5 yr expected):0.871.901.310.65
P/S:4.086.016.342.16

Skyworks has the second-lowest gross margin among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
ADI0484,211
AVGO0265,791
RFMD0281,759

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.