NXP Semiconductors (NASDAQ:NXPI) Stock Breaks Below 200-Day Moving Average – What’s Next?

NXP Semiconductors N.V. (NASDAQ:NXPI)’s share price crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $246.45 and traded as low as $244.42. NXP Semiconductors shares last traded at $244.43, with a volume of 12,426,519 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently commented on NXPI. Stifel Nicolaus lowered their target price on NXP Semiconductors from $265.00 to $250.00 and set a “hold” rating for the company in a research note on Wednesday, October 28th. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price target on shares of NXP Semiconductors in a research note on Wednesday, October 28th. JPMorgan Chase & Co. upped their price target on NXP Semiconductors from $295.00 to $300.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Bank of America reiterated a “neutral” rating and issued a $280.00 price target on shares of NXP Semiconductors in a report on Wednesday, October 28th. Finally, Morgan Stanley lowered their price objective on NXP Semiconductors from $338.00 to $313.00 and set an “overweight” rating for the company in a research report on Wednesday, October 28th. Sixteen equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $295.78.

NXP Semiconductors Stock Up 1.6%

The firm’s 50 day moving average is $236.09 and its two-hundred day moving average is $246.54. The firm has a market cap of $62.58 billion, a P/E ratio of 19.52, a price-to-earnings-growth ratio of 0.87 and a beta of 1.83. The company has a current ratio of 2.12, a quick ratio of 1.47 and a debt-to-equity ratio of 0.80.

NXP Semiconductors (NASDAQ:NXPI) last issued its earnings results on Wednesday, October 28th. The semiconductor provider reported $4.20 EPS for the quarter, beating the consensus estimate of $4.12 by $0.08. The firm had revenue of $3.79 billion during the quarter, compared to the consensus estimate of $3.76 billion. NXP Semiconductors had a net margin of 23.40% and a return on equity of 28.57%. The business’s quarterly revenue was up 19.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.11 earnings per share. As a group, research analysts anticipate that NXP Semiconductors N.V. will post 13.81 EPS for the current fiscal year.

NXP Semiconductors Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th were paid a $1.0140 dividend. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $4.06 dividend on an annualized basis and a yield of 1.6%. NXP Semiconductors’s payout ratio is presently 31.92%.

NXP Semiconductors declared that its Board of Directors has authorized a share buyback plan on Tuesday, October 27th that authorizes the company to buy back $5 billion in outstanding shares. This repurchase authorization authorizes the semiconductor provider to reacquire shares of its stock through open market purchases. Share repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity

In related news, EVP Andrew Micallef sold 1,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $226.04, for a total transaction of $226,040.00. Following the sale, the executive vice president directly owned 7,942 shares in the company, valued at $1,795,209.68. This trade represents a 11.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher L. Jensen sold 3,355 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $240.00, for a total transaction of $805,200.00. Following the completion of the sale, the executive vice president directly owned 288 shares in the company, valued at $69,120. This represents a 92.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,755 shares of company stock worth $1,136,680 over the last quarter. 0.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NXP Semiconductors

A number of large investors have recently added to or reduced their stakes in NXPI. Farther Finance Advisors LLC acquired a new position in NXP Semiconductors during the third quarter worth $1,126,000. Ieq Capital LLC acquired a new stake in NXP Semiconductors in the 2nd quarter valued at $1,208,000. BlackRock Inc. acquired a new stake in NXP Semiconductors in the 2nd quarter valued at $6,716,412,000. The Manufacturers Life Insurance Company bought a new stake in NXP Semiconductors during the 2nd quarter worth about $36,657,000. Finally, Andra AP fonden lifted its position in NXP Semiconductors by 7.1% during the 2nd quarter. Andra AP fonden now owns 72,841 shares of the semiconductor provider’s stock worth $20,471,000 after buying an additional 4,800 shares in the last quarter. Institutional investors own 90.54% of the company’s stock.

About NXP Semiconductors

NXP Semiconductors is a global semiconductor company headquartered in Eindhoven, the Netherlands. It develops and supplies chips and related technologies for automotive, industrial and Internet of Things, mobile, and communications infrastructure applications.

Its products include microcontrollers and processors, analog and mixed-signal components, connectivity solutions, and security technologies. In the automotive sector, NXP supplies technologies used in vehicle networking, radar, and safety systems; its other offerings support applications such as secure identification and near-field communication.

The company traces its origins to Philips’ semiconductor business, which became an independent company in 2006.