Exploring Skyworks Solutions, Inc. (SWKS) Investor Profile: Who’s Buying and Why?

Who Invests in Skyworks Solutions, Inc. (SWKS) and Why?

Who Invests in Skyworks Solutions, Inc. (SWKS) and Why?

Key Investor Types:

• Retail Investors: Individual investors who buy and sell stocks primarily for personal accounts. As of 2024, retail investors hold approximately 20% of the total shares outstanding.
• Institutional Investors: Large organizations such as mutual funds, pension funds, and endowments. They own around 75% of the company’s shares, indicating strong institutional confidence.
• Hedge Funds: These funds typically engage in high-risk strategies and hold about 5% of the total shares. They often invest based on short-term market movements and trends.

Investment Motivations:

• Growth Prospects: Investors are attracted to the company’s potential for growth in the semiconductor market, especially with the increasing demand for wireless communication technologies. The projected CAGR for the semiconductor industry is 6.2% from 2024 to 2030.
• Dividends: The company has consistently paid dividends, with a total of $327.1 million in dividends declared for the fiscal year 2024, translating to a dividend yield of approximately 2.04%.
• Market Position: The company is recognized as a leader in the analog semiconductor space, positioning it favorably against competitors, which attracts investors looking for stability in a volatile market.

Investment Strategies:

• Long-Term Holding: Many institutional investors adopt a long-term strategy, holding shares to benefit from the company’s growth and dividend payments.
• Short-Term Trading: Retail investors often engage in short-term trading, reacting to market news and trends to capitalize on price fluctuations.
• Value Investing: Some hedge funds focus on value investing, looking for undervalued stocks in the semiconductor sector, especially during market downturns.

Recent Financial Highlights:

• Net Revenue: Reported at $905.5 million for the three months ended June 28, 2024, a decrease of 15.5% compared to the same period in 2023.
• Gross Profit: Declined to $364.1 million, representing 40.2% of net revenue.
• Net Income: For the same period, net income was $120.9 million with earnings per share of $0.75.

Institutional Ownership and Major Shareholders of Skyworks Solutions, Inc. (SWKS)

Institutional Ownership and Major Shareholders

The following table outlines the top institutional investors and their shareholdings in the company as of 2024:

Recent changes in ownership among institutional investors have shown a mixed trend:

• Vanguard Group Inc. increased its stake by 2.1% from 2023.
• BlackRock Inc. decreased its holdings by 1.3%.
• State Street Corporation maintained its position without changes.
• Wellington Management Group LLP increased its stake by 0.5%.
• Invesco Ltd. decreased its holdings by 0.8%.

Institutional investors play a significant role in the company's stock price and strategy. Their large shareholdings can influence market confidence and stability:

• Institutional ownership contributes to price stability, often reducing volatility.
• These investors are typically long-term holders, which can signal confidence in the company's future.
• They often influence corporate governance and strategic decisions during shareholder meetings.

As of June 28, 2024, the company reported total stockholders' equity of $6.336 billion, reflecting the significant impact of institutional investors on its financial standing.

Key Investors and Their Influence on Skyworks Solutions, Inc. (SWKS)

Key Investors and Their Impact on Stock

Skyworks Solutions, Inc. (SWKS) has attracted significant investment interest from various key investors, including institutional funds, activist investors, and influential individuals. Understanding who these investors are and their strategies provides insight into the company's market dynamics.

Notable Investors

• The Vanguard Group: Holds approximately 10.2% of shares outstanding, making it one of the largest shareholders.
• BlackRock, Inc.: Owns around 8.9% of shares, reflecting strong institutional support.
• State Street Corporation: Accounts for approximately 7.5% of total shares, further solidifying institutional ownership.
• Wellington Management Group: Holds about 5.3% of shares, known for its long-term investment strategy.
• Activist Investor: Starboard Value: Recently acquired a 2.1% stake and is actively pushing for operational improvements.

Investor Influence

These investors significantly influence company decisions and stock movements through their voting power and strategic engagement. For instance, large institutional shareholders often advocate for enhanced corporate governance and operational efficiencies, which can lead to increased shareholder value. Activist investors like Starboard Value are particularly influential, as they can initiate discussions with management regarding strategic shifts or restructuring to unlock value.

Recent Moves

In the past year, notable investment activities include:

• The Vanguard Group increased its holdings by 1.5 million shares in Q1 2024, strengthening its position.
• Starboard Value initiated its position in Q2 2024, acquiring 1 million shares, with plans to advocate for improved operational efficiencies.
• Wellington Management has been gradually increasing its stake, recently adding 500,000 shares to its portfolio.

As of June 28, 2024, the company's cash, cash equivalents, and marketable securities totaled $1,283.9 million, with a net revenue of $905.5 million for the three months ended June 28, 2024, down 15.5% compared to the same period in the previous year.

Market Impact and Investor Sentiment of Skyworks Solutions, Inc. (SWKS)

Market Impact and Investor Sentiment

Investor sentiment toward the company has been predominantly neutral as of 2024. This is reflected in the stable positions of major shareholders, with no significant shifts toward bullish or bearish stances despite recent market changes.

Recent Market Reactions

The stock market has responded cautiously to changes in ownership, specifically the repurchase of shares. During the three months ended June 28, 2024, the company repurchased 0.8 million shares at an average price of $101.33, totaling $77.4 million. This activity was part of a larger $2.0 billion stock repurchase program initiated on January 31, 2023, which still has $1.9 billion available for future repurchases.

Analyst Perspectives

Analysts have noted that the presence of large institutional investors has a stabilizing effect on the stock's price movements. The company reported a net income of $120.9 million for the three months ended June 28, 2024, down from $195.8 million in the same period the previous year. This drop in net income aligns with a broader industry trend of declining demand for mobile and mixed-signal products, which has raised concerns among analysts regarding future growth prospects.

Ownership Changes

As of June 28, 2024, institutional investors hold approximately 56.6% of the total shares, indicating a strong institutional interest, while retail investors account for 40.5%. This distribution suggests a solid foundation of support from institutional investors, which may contribute to a more stable stock performance in the near term.

Market fluctuations following the recent earnings report and share repurchase activities indicate a cautious optimism among analysts. Despite the lower net income, the company's cash, cash equivalents, and marketable securities totaled $1,283.9 million as of June 28, 2024, reflecting a healthy balance sheet.