Stock Update (NASDAQ:SWKS): Skyworks Solutions Inc Announces Termination of Merger Agreement with PMC-Sierra


Skyworks Solutions Inc (NASDAQ:SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today announced that it decided not to modify its amended and restated merger agreement with PMC-Sierra, Inc. (PMC®) (NASDAQ: PMCS), entered into on October 29, 2015. Today PMC terminated the amended and restated merger agreement and, as a result, Skyworks is entitled to an $88.5 million termination fee from PMC.

Skyworks maintains a highly disciplined approach to the assessment of potential acquisition candidates, and at an increased valuation, PMC no longer meets Skyworks’ financial criteria.

Skyworks’ upwardly revised mid-term target operating model remains unchanged from the annualized non-GAAP earnings per share of $8.00 it provided on its Q4 FY2015 earnings conference call on November 5, 2015. (Original Source)

Shares of Skyworks Solutions closed yesterday at $77.72, down $0.80 or -1.1%. SWKS has a 1-year high of $112.88 and a 1-year low of $64.03. The stock’s 50-day moving average is $78.89 and its 200-day moving average is $91.30.

On the ratings front, Skyworks has been the subject of a number of recent research reports. In a report issued on November 6, Canaccord Genuity analyst Michael Walkley reiterated a Buy rating on SWKS, with a price target of $132, which represents a potential upside of 69.8% from where the stock is currently trading. Separately, on November 4, Brean Murray Carret’s Mike Burton 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, Michael Walkley and Mike Burton have a total average return of 16.1% and 11.4% respectively. Walkley has a success rate of 61.6% and is ranked #17 out of 3636 analysts, while Burton has a success rate of 56.4% and is ranked #282.

Overall, one research analyst has assigned a Hold rating and 7 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 $115.80 which is 49.0% above where the stock closed yesterday.

Skyworks Solutions Inc, together with its consolidated subsidiaries is an innovator of high reliability analog and mixed signal semiconductors.

 

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