SkyWater Technology, Inc. (NASDAQ:SKYT) experienced a significant increase in its stock price, rising by 7% during trading on November 5, 2023. The shares reached a high of $19.57 before closing at $19.23, following a previous close of $17.98. Approximately 578,108 shares were traded during the session, marking a notable decline of 50% from the average trading volume of 1,148,991 shares.
Analysts have recently issued several positive assessments of SkyWater Technology, contributing to the surge in its stock price. On October 21, Stifel Nicolaus initiated coverage with a “buy” rating and a target price of $25.00. In a report dated November 6, Piper Sandler raised their target price from $12.00 to $17.00 while maintaining an “overweight” rating. Needham & Company LLC also increased their price target from $15.00 to $20.00 with a “buy” rating. Finally, TD Cowen raised their price objective from $22.00 to $24.00, affirming a “buy” rating. Overall, five analysts have rated the stock as a “buy,” while one rated it “hold” and another “sell.” According to MarketBeat.com, SkyWater Technology holds a consensus rating of “Moderate Buy” with a price target of $21.50.
Quarterly Earnings Exceed Expectations
In addition to the rising stock price, SkyWater Technology reported strong earnings results on November 5. The firm reported earnings per share (EPS) of $0.24, surpassing the consensus estimate of ($0.17) by $0.41. The company achieved a net margin of 36.36%, although it recorded a negative return on equity of 4.96%. Revenue for the quarter amounted to $150.74 million, exceeding the consensus estimate of $135.50 million. Looking ahead, SkyWater Technology has provided guidance for Q4 2025, projecting an EPS of between -0.080 and 0.040.
Research analysts project that SkyWater Technology will post an EPS of -0.22 for the current fiscal year, reflecting ongoing challenges despite recent successes.
Insider Transactions and Institutional Investments
Recent insider activity has also drawn attention. On November 14, Chief Financial Officer Steve Manko sold 50,000 shares of company stock at an average price of $17.40, totaling $870,000. Following this transaction, Manko retained 277,122 shares valued at approximately $4.82 million, indicating a 15.28% decrease in ownership.
Additionally, director Loren A. Unterseher sold 100,000 shares on November 26 for an average of $14.54, amounting to $1.45 million. After this sale, Unterseher still holds 4,487,394 shares valued at around $65.25 million, a 2.18% reduction in their position. Over the past ninety days, insiders have sold a total of 1,165,835 shares valued at $15.79 million. Currently, insiders own 37.85% of the company’s stock.
Several institutional investors have also adjusted their positions in SkyWater Technology. Federated Hermes Inc. acquired a new stake during the second quarter, valued at approximately $25,000. BNP Paribas Financial Markets increased its position by 56.4%, now owning 2,749 shares worth $27,000. Financial Management Professionals Inc. and Russell Investments Group Ltd. also made significant adjustments, with the latter increasing its holdings by an impressive 814.1% during the third quarter.
Institutional investors and hedge funds currently hold 70.00% of the company’s stock, reflecting significant confidence in SkyWater Technology’s potential.
SkyWater Technology, Inc. operates as a pure-play technology foundry, specializing in semiconductor development, manufacturing, and packaging services within the United States. The company collaborates with clients to provide engineering and process development support, focusing on a range of silicon-based technologies.
As the company continues to navigate the semiconductor landscape, investor interest remains high, driven by its recent performance and promising outlook.
