Skyworks Solutions Inc (NASDAQ:SWKS) announced that its Board of Directors has authorized the repurchase of up to $500 million of the company’s common stock from time to time prior to January 17, 2019, on the open market or in privately negotiated transactions, in compliance with applicable securities laws and other legal requirements. This newly authorized stock repurchase program replaces in its entirety the $400 million stock repurchase program that was approved by the Board of Directors on July 19, 2016, and had $95 million of repurchase authority remaining.
The timing and amount of any shares of the company’s common stock that are repurchased under the new repurchase program will be determined by the company’s management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the company’s stock plans and for other corporate purposes.
The company currently expects to fund the repurchase program using the company’s working capital. As of December 30, 2016, the company had cash and cash equivalents of $1.35 billion.
Shares of Skyworks reached a new 52-week high, rising nearly 6% to $83.49 in after-hours trading. The stock’s 50-day moving average is $76.52 and its 200-day moving average is $73.66.
On the ratings front, SWKS has been the subject of a number of recent research reports. In a report released yesterday, Brean Capital analyst Mike Burton reiterated a Buy rating on SWKS, with a price target of $85, which implies an upside of 8% from current levels. Separately, on January 16, Oppenheimer’s Rick Schafer reiterated a Buy rating on the stock and has a price target of $100.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mike Burton and Rick Schafer have a yearly average return of 13.4% and 15.2% respectively. Burton has a success rate of 72% and is ranked #99 out of 4355 analysts, while Schafer has a success rate of 74% and is ranked #28.
Overall, 4 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $87.20 which is 10.6% above where the stock opened today.
Skyworks Solutions, Inc. engages in the design, development, and manufacture of proprietary semiconductor products. Its product portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, isolators, lighting and display solutions, mixers, modulators, optocouplers, optoisolators, phase shifters, synthesizers, power dividers and combiners, power management devices, receivers, switches, and technical ceramics.