Skyworks Rises 1.64% on $210M Volume (Rank 494) as Shorts Jump 20% and Dividend Payouts Raise Red Flags

On August 12, 2025, Skyworks Solutions (SWKS) closed with a 1.64% gain, trading with a daily volume of $210 million, ranking 494th in market activity. Analyst coverage remains active, with 22 research reports issued in the past 90 days, reflecting sustained institutional interest in the stock.

The stock carries a consensus "Hold" rating based on five buy, 14 hold, and three sell recommendations. Earnings are projected to grow by 17.53% to $5.23 per share, though its PEG ratio of 2.03 suggests potential overvaluation. A price-to-book ratio of 2.30 indicates reasonable valuation relative to balance sheet strength. However, a 75.68% dividend payout ratio raises concerns about sustainability, despite a 3.04% yield and 11 consecutive years of dividend growth.

Short interest in SWKS has risen by 19.95% month-over-month, with 8.38% of shares shorted and a 5.7-day-to-cover ratio. This bearish positioning contrasts with its strong institutional ownership of 85.43%, which signals confidence in long-term stability. Insider selling of $1.09 million in the past three months further highlights mixed signals in corporate governance sentiment.

News sentiment analysis shows a 0.91 score over seven days, outperforming the 0.64 average for the technology sector. Institutional ownership remains a key support factor, while the recent decline in retail search activity (-44% in 30 days) suggests waning retail engagement.

A backtest of a volume-based trading strategy (top 500 stocks by daily volume held for one day) from 2022 to present generated a $2,550 profit. However, the strategy experienced a maximum drawdown of -15.2% on October 27, 2022, highlighting the inherent volatility of short-term volume-driven approaches.