Reza Kasnavi, Senior Vice President of Technology and Manufacturing at Skyworks Solutions, Inc. (NASDAQ:SWKS), recently executed significant stock transactions according to a recent SEC filing. On November 8, Kasnavi sold a total of 11,911 shares of Skyworks Solutions common stock, generating approximately $1.07 million. The shares were sold at an average price range between $89.20 and $89.90 per share.
In addition to the sales, Kasnavi also engaged in other transactions involving stock acquisitions and tax obligations. On November 7 and 8, he acquired 8,887 shares through restricted stock units, which converted into common stock at no cost. Furthermore, Kasnavi disposed of 13,400 shares to cover tax withholding obligations, with prices ranging from $89.16 to $91.17 per share.
Following these transactions, Kasnavi holds 20,529 shares of Skyworks Solutions directly, as well as additional shares through the company's 401(k) plan. These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling company stock.
In other recent news, Skyworks Solutions reported a successful fourth quarter with adjusted earnings per share of $1.55, surpassing analyst estimates of $1.52. The company's revenue for the quarter was $1.02 billion, matching consensus expectations. Notably, Skyworks' fourth-quarter revenue grew 13% sequentially, exceeding the company's guidance.
These are among the recent developments at the firm. Additionally, the company demonstrated strong cash flow generation, reporting a record 40% free cash flow margin for fiscal 2024. Looking to the future, Skyworks provided an optimistic outlook for the first quarter of fiscal 2025, expecting revenue between $1.05 billion and $1.08 billion, with adjusted earnings per share of $1.57 at the midpoint of the revenue range.
The company also declared a quarterly dividend of $0.70 per share. In terms of business highlights, Skyworks secured 5G content for premium Android smartphones and expanded Wi-Fi 7 design wins with major networking companies. CEO Liam K. Griffin expressed confidence in the company's future prospects, particularly in relation to the potential of AI to drive demand for higher levels of RF complexity.
InvestingPro Insights
To provide additional context to Reza Kasnavi's recent stock transactions, it's worth examining some key financial metrics and insights from InvestingPro for Skyworks Solutions (NASDAQ:SWKS).
According to InvestingPro data, Skyworks Solutions currently has a market capitalization of $13.91 billion. The company's P/E ratio stands at 17.83, suggesting a moderate valuation relative to its earnings. This is particularly interesting given that Skyworks is trading near its 52-week low, as highlighted by one of the InvestingPro Tips.
Notably, Skyworks Solutions has demonstrated a commitment to shareholder returns. An InvestingPro Tip indicates that the company has raised its dividend for 10 consecutive years, reflecting a strong track record of increasing shareholder value. The current dividend yield is 3.22%, which may be attractive to income-focused investors.
However, it's important to note that analysts anticipate a sales decline in the current year, according to another InvestingPro Tip. This projection aligns with the reported revenue growth of -11.87% over the last twelve months, which could explain some of the recent insider selling activity.
Despite these challenges, Skyworks Solutions maintains a strong financial position. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations. This financial stability could provide the company with flexibility as it navigates the anticipated sales decline.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 11 more tips available for Skyworks Solutions. These tips could provide valuable context for understanding the company's financial health and future prospects.
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