SkyWater Technology (SKYT) generated market buzz by expanding its partnership with Rockley Photonics (RKLY) on August 24. However, can the stock continue to rally in price even though the company’s losses widened in the second quarter? Let’s find out.Integrated circuits (ICs) manufacturer SkyWater Technology, Inc. (SKYT) in Bloomington, Minn., had an impressive stock market debut on April 21, 2021, with its shares opening 10.7% above their initial offer price of $14. On August 24, the company announced an expanded partnership with Rockley Photonics Holdings Limited (RKLY), broadening their collaboration to include wafer back-end-of-line processing for RKLY’s spectrophotometer-on-a-chip health monitoring solution.
SKYT’s shares have gained 7.7% in price over the past three months to close Friday’s trading session at $27.37.
However, the stock has lost 19.1% since hitting its all-time price high of $34.43 on June 18. One of SKYT’s advanced technology services (ATS) programs that generated significant revenue in 2020 is being restructured and is not expected to resume operations until 2022. Furthermore, the company’s revenue and EPS estimates were cut sharply as analysts factored in their latest outlook. In fact, Jeffries has downgraded the stock’s rating from Buy to Hold and lowered the price target to $23. So, SKYT’s prospects look bleak in the near term.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.