NXP Semiconductors N.V. (NXPI) Stock: Why It’s Headed For The Bottom

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NXP Semiconductors N.V. (NXPI) is falling in the market today. The stock, one that is focused in the technology industry, is presently priced at $97.99 after tumbling -5.13% so far today. In terms of tech companies, there are quite a few factors that have the potential to cause movement in the market. One of the most common is news. Here are the most recent stories associated with NXPI:

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Aug-19-19 04:19PM ON Semiconductor, NXP Semiconductors Bright Spots Amid Chip Downturn
01:42PM 2 Chip Stocks to Buy for a Comeback, According to an Analyst
Aug-16-19 11:15AM Did You Miss NXP Semiconductors’s (NASDAQ:NXPI) 52% Share Price Gain?
Aug-08-19 06:50AM Why Impinj Stock Jumped 26.5% in July
Aug-05-19 02:45PM 4 Simple Reasons to Avoid Qualcomm

Nonetheless, any time investors are making a decision to invest, investors should look at much more than news, this is especially the case in the ever changing tech sector. Here’s what’s happening with NXP Semiconductors N.V..

How NXPI Has Been Trending

While a move toward the top in a single session, like the fall that we’re seeing from NXP Semiconductors N.V. may make some investors upset, a single session fall by itself should not be the reason for a decision to, or not to, invest in a stock. It’s always important to look at trends experienced by the stock beyond a single session. In the case of NXPI, here are the returns on investment that investors have seen:

  • Past 7 Days – In the last week, NXPI has generated a change in value amounting to -5.38%.
  • Monthly – The return from NXP Semiconductors N.V. in the past month has been -3.71%.
  • Past 3 Months – Throughout the last quarter, the stock has generated a return that works out to 6.73%
  • Past 6 Months – In the last 6 months, investors have seen a change that amounts to 0.88% from the stock.
  • YTD – Since the the last trading session of last year NXPI has produced a return on investment of 33.72%.
  • Full Year – Finally, over the past year, investors have seen performance that comes to 7.42% from NXPI. Throughout this period of time, the stock has sold at a high of -9.69% and a low price of 44.91%.

Notable Ratios

Digging into a few key ratios having to do with a company can give investors an understanding of how dangerous and/or potentially profitable a pick might be. Below are some of the key ratios to think about when digging into NXPI.

Short Ratio – The short ratio is a tool that is used to measure the amount of short interest. The higher this ratio, the more investors are expecting that the price of the stock is going to tumble. Throughout the sector, strong technology stocks can have a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, in relation to NXP Semiconductors N.V., the stock’s short ratio clocks in at 1.64.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure If a company is able to cover its debts when they mature using current assets or quick assets. In the technology industry, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can be upsetting. However, some gems in the tech sector come with strong quick and current ratios. When it comes to NXPI, the quick and current ratios work out to 1.40 and 1.80 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this particular case, the book to share value ratio comes in at 33.16.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. When it comes to NXPI, the cash to share value works out to 9.57.

What Are Big Money Players Doing With NXP Semiconductors N.V.

An interesting fact that I have learned in my brief time in existence has been that smart investors tend to follow the moves made by big money players. Usually, investors that are looking to keep their investments relatively safe will pay close attention to trades made by institutional investors as well as insiders. So, where is the big money as it relates to NXPI? Here’s the data:

  • Institutions – At the moment, institutions hold 79.40% of the company. Nonetheless, it’s worth considering that institutional ownership has changed in the amount of -2.17% in the last 3 months.
  • Insider Holdings – as it relates to insiders, those close to the situation currently hold 0.30% of NXP Semiconductors N.V.. Insider ownership of the company has seen a change of -1.04% in the past 3 months.

Analyst Opinions Of NXP Semiconductors N.V.

Although it’s rarely a good idea to unknowingly follow the opinions of analysts, it is a good idea to consider their analysis in order to validate your own thoughts before making investment decisions in the technology sector. Below you’ll find the most recent moves that we’ve seen from analysts with regard to NXPI.

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Aug-19-19 Initiated Raymond James Outperform
Jul-29-19 Upgrade Evercore ISI In-line → Outperform
Jun-12-19 Upgrade Morgan Stanley Equal-Weight → Overweight
Jun-05-19 Upgrade Stifel Sell → Hold
May-01-19 Reiterated BofA/Merrill Buy $105 → $125

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $8.82. In the current quarter, analysts see the company producing earnings in the amount of $1.93. Over the last 5 years, NXPI has generated revenue in the amount of $14.30% with earnings coming in at 37.50%. On a quarter over quarter basis, earnings have seen movement of -7.60% and revenue has seen movement of -3.20%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 316.67M shares of NXP Semiconductors N.V. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, NXPI has a float of 316.67M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to NXPI, the short percent of the float is 1.94%.

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