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Skyworks Solutions (SWKS) shares rallied and printed a new 52-week high on Sept. 11 after chief executive Phil Brace said the pending merger with Qorvo has entered its final phases. As investors cheered the disclosure, SWKS's relative strength index (RSI) soared into the early 80s, indicating overbought conditions that often trigger profit-taking in the near term.

Including today's gains, Skyworks stock is up more than 50% versus its low in mid-July.

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According to CEO Phil Brace, approvals for the $22 billion Qorvo deal are now down to just two remaining regulatory jurisdictions, with expectations that the merger will close by the end of 2026.

This reduced regulatory uncertainty, causing merger-arbitrage investors and institutional buyers to reprice the deal's odds. Additionally, SWKS shares have ripped higher in recent sessions due to iPhone-related tailwinds as well.

Key customer Apple (AAPL) made major product announcements this week, including its first foldable smartphone, driving expectations for higher radio-frequency (RF) component demand and content per device.

Note that Skyworks Solutions is currently trading at an attractive price-to-sales (P/S) ratio of about 2.8x.

The options market remains convinced that Skyworks shares' recent gains will prove short-lived.

According to Barchart, the put-to-call ratio on contracts expiring Sept. 16 sits at 5.91x at the time of writing, indicating a very strong bearish skew. And the lower price on those options contracts is set at $78.72 currently, signaling potential for a more than 11% decline through the end of next week.

It's also worth mentioning that SWKS has a history of ending September with a 1.62% loss on average, a seasonal pattern that further dulls its near-term appeal.

Crucially, Wall Street analysts also believe that the recent SWKS stock price rally has gone a little too far, and a near-term pullback is likely.

As of writing, the consensus rating on Skyworks Solutions sits at "Hold" only, with the mean price target of about $70 indicating potential downside of over 20% from here.

That said, SWKS does pay a healthy dividend of 3.21%.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com