NXP Semiconductors N.V. (NXPI) To Send Investors On Roller Coaster Ride

The NXP Semiconductors N.V. (NASDAQ:NXPI) bears won the day, but the reality is that the -0.55 points or -0.59 percent decline gave very little definitive technical indication of where the stock could be headed next. On 14 March, the shares traded at $92.85 with a light trade volume of 2.097 million shares. After opening the session at $93.13, the shares went as high as $94.02 and as low as $92.6, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $30.8 billion and now has 331.88 million shares outstanding. NXP Semiconductors N.V. (NXPI) stock has lost -0.41 percent of market value in 21 trading days.

NXPI stock has a trailing 3-year beta of 1.08, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $6.85 a share in the trailing twelve months. The stock’s value has surged 26.71 percent year to date (YTD) against a decline of -24.28 percent in 12 month’s time. The company’s shares still trade -24.82 percent away from its 1-year high of $123.50 and 37.31 percent up from 52-week low of $67.62. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

NXP Semiconductors N.V. (NXPI) will probably climb 10.25 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $128-month high price target. This represents a whopping 37.86 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $105, which represents a return potential of 13.09 percent when compared to the closing price of the stock of $92.85 on Thursday, March 14. The lowest price target for the stock is $82 — slightly more than -11.69 percent from NXPI’s current share price.

History has shown that shares in NXP Semiconductors N.V. have gone up on 23 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $92.29. Below this, the next support is placed in the zone of $91.74. Till the time, the NXPI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.84 on daily chart, which may remain a cause for concern. If the price breaks below $91.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $93.71 mark may result into a pull-back move towards $94.58 level.

Shares of NXP Semiconductors N.V. (NXPI) are trading at a P/E ratio of 20.35 times earnings reported for the past 12 months. The industry NXPI operates in has an average P/E of 247.18. Its P/E ratio went as low as 13.81X and as high as 170.35 over the 5-year span.Further, it is sporting a 3.28 on the Price-to-Sales ratio. Compare this with the industry average P/S of 10.83. 51.7 percent is the gross profit margin for NXP Semiconductors N.V. and operating margin sits at 27.9 percent. Along with this, the net profit margin is 23.5 percent.