Shares of SkyWater Technology, Inc. (NASDAQ:SKYT) have garnered an average recommendation of “Moderate Buy” from seven ratings firms, according to MarketBeat. The analysis reveals a diverse outlook on the stock, with one analyst issuing a sell rating, another assigning a hold rating, and five recommending a buy. The consensus price target set by brokerages that updated their coverage within the past year stands at $21.50.
Several prominent financial institutions have recently provided insights on SkyWater. On November 6, 2023, Needham & Company LLC raised its price target for the company from $15.00 to $20.00 while maintaining a buy rating. In the same week, Cowen reaffirmed its buy rating for SkyWater Technology. Conversely, Weiss Ratings reiterated a sell rating in a research note dated December 29, 2023.
SkyWater Technology recently reported its quarterly earnings, significantly surpassing analyst expectations. For the quarter ending November 5, 2023, the company achieved earnings per share of $0.24, exceeding the consensus estimate of a loss of $0.17 by $0.41. The company generated revenue of $150.74 million, outperforming analyst predictions of $135.50 million. SkyWater also indicated a net margin of 36.36% and a negative return on equity of 4.96%.
Insider Transactions and Hedge Fund Activity
Recent insider activity has also drawn attention. On November 26, 2023, Director Loren A. Unterseher sold 100,000 shares of SkyWater Technology at an average price of $14.54, amounting to a total transaction value of $1,454,000. Following this sale, Unterseher retains 4,487,394 shares, valued at approximately $65.25 million, marking a 2.18% decrease in his holdings.
CFO Steve Manko also engaged in stock transactions, selling 50,000 shares on November 14, 2023, for a total of $870,000 at an average price of $17.40. After this transaction, Manko holds 277,122 shares, valued at roughly $4.82 million, representing a 15.28% decrease in his position.
In total, insiders have sold 384,279 shares worth approximately $5.76 million over the last quarter. Notably, insiders currently own 37.85% of the company’s stock.
Hedge funds have also adjusted their positions in SkyWater Technology. Federated Hermes Inc. acquired a new stake during the second quarter valued at about $25,000. BNP Paribas Financial Markets increased its holdings by 56.4%, now owning 2,749 shares worth around $27,000. Russell Investments Group Ltd. dramatically lifted its stake by 814.1% in the third quarter, acquiring 2,468 shares valued at $46,000.
Overview of SkyWater Technology
Founded in Bloomington, Minnesota, SkyWater Technology Solutions, Inc. specializes in semiconductor manufacturing. The company focuses on developing high-reliability integrated circuits using advanced processes on 200-millimeter wafers. Its service offerings encompass various applications, including analog/mixed-signal, radio frequency (RF), and micro-electromechanical systems (MEMS).
SkyWater’s comprehensive model supports clients through every stage, from prototype development to market introduction. With a client base spanning sectors such as aerospace, defense, automotive, and medical, the company is positioned to meet demanding performance and quality standards.
As SkyWater Technology continues to make strides in the semiconductor industry, investors and analysts alike will be watching closely to see how the company navigates the challenges and opportunities ahead.
