105,970 Shares of NXP Semiconductors N.V. $NXPI Purchased by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management opened a new NXP Semiconductors position, buying 105,970 shares worth approximately $25.1 million in the third quarter. Institutional investors collectively own 90.54% of the stock.
• NXP beat quarterly earnings and revenue expectations, reporting EPS of $4.20 and revenue of $3.79 billion; revenue rose 19.3% year over year. The company also authorized up to $5 billion in share repurchases.
• Analysts have a consensus “Moderate Buy” rating, with an average price target of $295.78.

Rakuten Investment Management Inc. bought a new position in NXP Semiconductors N.V. (NASDAQ:NXPI - Free Report) during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 105,970 shares of the semiconductor provider's stock, valued at approximately $25,059,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in NXP Semiconductors during the 2nd quarter valued at approximately $6,716,412,000. State Street Corp raised its holdings in shares of NXP Semiconductors by 6.4% during the 2nd quarter. State Street Corp now owns 11,699,143 shares of the semiconductor provider's stock worth $3,298,932,000 after acquiring an additional 702,099 shares in the last quarter. Wellington Management Group LLP purchased a new stake in shares of NXP Semiconductors during the 2nd quarter worth approximately $21,099,000. Bank of America Corp DE purchased a new stake in shares of NXP Semiconductors during the 2nd quarter worth approximately $1,169,846,000. Finally, Van ECK Associates Corp bought a new position in shares of NXP Semiconductors during the 2nd quarter valued at approximately $1,167,458,000. 90.54% of the stock is owned by institutional investors.

NXP Semiconductors Trading Up 2.2%

Shares of NXPI stock opened at $262.79 on Wednesday. The company has a market cap of $66.24 billion, a PE ratio of 20.66, a price-to-earnings-growth ratio of 0.87 and a beta of 1.83. NXP Semiconductors N.V. has a 1 year low of $183.00 and a 1 year high of $339.95. The stock's 50 day simple moving average is $234.42 and its two-hundred day simple moving average is $246.29. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.12 and a quick ratio of 1.47.

NXP Semiconductors (NASDAQ:NXPI - Get Free Report) last announced its earnings results on Tuesday, October 27th. The semiconductor provider reported $4.20 EPS for the quarter, topping analysts' consensus estimates of $4.12 by $0.08. The firm had revenue of $3.79 billion during the quarter, compared to analysts' expectations of $3.76 billion. NXP Semiconductors had a return on equity of 28.57% and a net margin of 23.40%. The company's quarterly revenue was up 19.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.11 EPS. Research analysts predict that NXP Semiconductors N.V. will post 13.81 earnings per share for the current year.

NXP Semiconductors declared that its Board of Directors has approved a stock repurchase plan on Tuesday, October 27th that permits the company to buy back $5 billion in shares. This buyback authorization permits the semiconductor provider to repurchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its stock is undervalued.

NXP Semiconductors Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Wednesday, September 16th were given a $1.0140 dividend. The ex-dividend date was Wednesday, September 16th. This represents a $4.06 dividend on an annualized basis and a yield of 1.5%. NXP Semiconductors's dividend payout ratio (DPR) is currently 31.92%.

Insiders Place Their Bets

In other NXP Semiconductors news, EVP Christopher Jensen sold 3,355 shares of NXP Semiconductors 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 transaction, the executive vice president directly owned 288 shares of the company's stock, valued at $69,120. The trade was a 92.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Micallef sold 1,000 shares of the business'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 transaction, the executive vice president owned 7,942 shares in the company, valued at $1,795,209.68. This trade represents a 11.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

NXPI has been the subject of a number of recent research reports. KeyCorp cut their target price on shares of NXP Semiconductors from $345.00 to $330.00 and set an "overweight" rating for the company in a report on Wednesday, October 28th. Susquehanna boosted their price target on shares of NXP Semiconductors from $210.00 to $250.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 21st. Oppenheimer upped their price target on shares of NXP Semiconductors from $300.00 to $325.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. Jefferies Financial Group lowered their price objective on shares of NXP Semiconductors from $370.00 to $350.00 and set a "buy" rating for the company in a research report on Wednesday, October 28th. Finally, UBS Group cut shares of NXP Semiconductors from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $305.00 to $270.00 in a research note on Monday, August 3rd. Sixteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $295.78.

NXP Semiconductors Company Profile

NXP Semiconductors N.V. is a global semiconductor company that develops technologies for automotive, industrial, communications infrastructure, mobile, and Internet of Things applications. The company provides processing, connectivity, security, sensing, and power-management solutions that help enable connected and automated systems.

Its product portfolio includes microcontrollers and application processors, automotive networking and radar solutions, secure identification and authentication technologies, near-field communication products, radio-frequency power amplifiers, analog and mixed-signal devices, and wireless connectivity solutions.

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