Skyworks Solutions Outlook - Bearish Technicals, Mixed Analysts, and Strong Money Flows

Market Snapshot

Takeaway: Skyworks Solutions is under pressure technically with a score of 2.06 (internal diagnostic score, 0-10), while recent money flows remain positive. Analysts show varied opinions, and fundamentals remain a mixed bag.

News Highlights

• May 30 - McKinsey on Tariffs and Chip Supply Chains: New research highlights the uncertainty around U.S. tariffs and their potential to disrupt semiconductor supply chains. This could affect Skyworks if global trade dynamics shift significantly in the near term.
• May 30 - US Semiconductors ETF Faces $750M Net Outflow: The SOXX ETF saw a massive outflow in May, signaling investor caution in the sector. This could pressure related stocks like Skyworks, especially in a market with weak sentiment.
• May 30 - Japan Offers U.S. Proposals for Rare Earths and Semiconductor Cooperation: The potential for U.S.-Japan collaboration could impact the semiconductor supply chain, possibly stabilizing long-term demand for Skyworks’ products.

Analyst Views & Fundamentals

Analysts are mixed in their views, with a simple average rating of 2.33 and a performance-weighted rating of 1.17. The three participating institutions—Citigroup, Susquehanna, and UBS—showed no consensus, with two issuing “Underperform” ratings and one “Neutral.” This contrasts with the current price trend, which is down -3.41%, aligning with the pessimistic market outlook.

Fundamental factors show a mixed picture:

• Net cash flow from operating activities per share (YoY growth rate %): -93.18% (score: 3)
• Net profit attributable to parent company shareholders / Net profit (%): 100.00% (score: 2)
• EV/EBIT: 108.80 (score: 2)
• Net cash flow from operating activities (YoY growth rate %): -26.84% (score: 2)
• Interest coverage ratio (EBIT / Interest expense) (%): 22.53% (score: 1)
• Inventory turnover days: 110.82 days (score: 1)
• Cash-MV: 0.33 (score: 2)

While some fundamentals like Cash-MV and Net profit are reasonably strong, the sharp decline in operating cash flow and EBIT signals underlying financial strain.

Money-Flow Trends

Big-money flows are positive, with large and extra-large investors showing inflows, while retail flows also lean positive. The overall inflow ratio is 54.53%, indicating that both institutional and retail investors are showing cautious optimism, despite the weak technical outlook. This suggests market players are buying dips or maintaining exposure amid broader sector uncertainty.

Key Technical Signals

Technically, the outlook is bleak, with a score of 2.06 (internal diagnostic score, 0-10). Bearish signals dominate, including:

• MACD Death Cross: Score of 1 (internal diagnostic score). A historically bearish indicator.
• Ex-Dividend Date: Score of 1 (internal diagnostic score). Often associated with price declines.
• Dividend Record Date: Score of 1 (internal diagnostic score). Another bearish date-based event.
• Bullish Engulfing: Score of 1 (internal diagnostic score). Normally bullish, but here misaligned with the broader trend.

Recent chart patterns from the last 5 days include:

• Aug 26: Ex-Dividend Date, Dividend Record Date
• Aug 25: WR Overbought (Neutral)
• Sept 2: MACD Death Cross (Bearish)
• Aug 27: Bullish Engulfing (Bearish)
• Sept 8: Hanging Man (Bearish)

Key insight: Momentum is clearly bearish, with 4 out of 5 indicators leaning negative. A pullback or correction seems likely.

Conclusion

Given the bearish technical outlook, mixed analyst ratings, and weak fundamental momentum, investors should consider waiting for a pull-back before taking any new positions. While big-money flows remain positive and the sector shows signs of resilience, the overall signal from technicals and fundamentals is not encouraging at this time. Watch for potential support levels and earnings announcements for a clearer near-term direction.