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PMC-Sierra Hits a 52-Week High; To be Acquired by Skyworks

Shares of PMC-SierraInc.PMCS hit a new 52-week high of $10.29 on Oct 9, eventually closing at $10.20. The company returned 56.62% in the last one year and 12.34% year-to-date. Average volume of shares traded over the last three months was roughly 5,403K.

What is Driving PMC-Sierra?

PMC-Sierra designs, develops, markets and supports semiconductor solutions. The technology company's semiconductor devices are used in various applications within communications network infrastructure equipment. With more data and video moving onto the global network, the company continues to develop innovative technologies for global service providers, which in turn drives growth.

PMC-Sierra's share price appreciated 33.8% after the leading semiconductor manufacturer, Skyworks Solutions Inc. SWKS , signed an agreement to acquire it. Through the deal, PMC-Sierra will gain a huge customer pool in addition to the vast product range and significant operational scale. This will ensure wider global acceptance and deeper market penetration driven by the large supply chain and distribution network. PMC-Sierra shareholders will receive $10.50 in cash for each share, a 37% premium to the share price at the close of Oct 5, 2015.

Skyworks, on the other hand, will be able to tap the phenomenal demand in the data center market. The acquisition will expand the company's product portfolio to better serve some of the fastest growing segments in the technology market, including cloud storage and optical networking.

Moreover, the stock has delivered an average earnings surprise of nearly 5.16% over the trailing four quarters. This Zacks Rank #3 (Hold) stock has a market cap of approximately $2.02 billion and a long-term expected earnings growth rate of 15%.

Stocks to Consider

Some better-ranked stocks in the technology space are Extreme Networks Inc. EXTR and Ixia XXIA , both sporting a Zacks Rank #2 (Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PMC-SIERRA INC (PMCS): Free Stock Analysis Report

SKYWORKS SOLUTN (SWKS): Free Stock Analysis Report

EXTREME NETWRKS (EXTR): Free Stock Analysis Report

IXIA (XXIA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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