NXP Semiconductors (NASDAQ:NXPI) Trading 7.3% Higher - Here's Why

Key Points

• Shares rose 7.3% to about $242.30 on Thursday, despite lighter-than-average volume (≈1.13M shares, down ~61% vs. normal).
• NXP narrowly beat the quarter with EPS $3.35 vs. $3.31 and revenue $3.34B vs. $3.30B, with revenue up 7.2% year-over-year and strong profitability (ROE ~26.7%, net margin ~16.5%).
• Analysts have cut some price targets but the consensus is a “Moderate Buy” with an average target of $248.53, and the company pays a quarterly dividend of $1.014 (annualized $4.06, ≈1.7% yield).

Shares of NXP Semiconductors N.V. (NASDAQ:NXPI - Get Free Report) traded up 7.3% on Thursday . The stock traded as high as $241.00 and last traded at $242.2960. 1,125,781 shares traded hands during trading, a decline of 61% from the average session volume of 2,860,406 shares. The stock had previously closed at $225.75.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Evercore dropped their target price on NXP Semiconductors from $292.00 to $260.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 4th. Mizuho restated an "underperform" rating and set a $188.00 target price (down from $255.00) on shares of NXP Semiconductors in a research note on Thursday, April 16th. Citigroup lowered their price target on NXP Semiconductors from $285.00 to $255.00 and set a "buy" rating for the company in a research report on Wednesday, February 4th. TD Cowen dropped their price target on NXP Semiconductors from $285.00 to $250.00 and set a "buy" rating on the stock in a research note on Wednesday, February 4th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $250.00 price target on shares of NXP Semiconductors in a research note on Tuesday, February 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, NXP Semiconductors currently has an average rating of "Moderate Buy" and an average price target of $248.53.

NXP Semiconductors Trading Up 6.9%

The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.38 and a current ratio of 2.05. The company has a 50 day simple moving average of $210.79 and a two-hundred day simple moving average of $216.71. The firm has a market cap of $60.93 billion, a PE ratio of 30.39, a P/E/G ratio of 1.03 and a beta of 1.46.

NXP Semiconductors (NASDAQ:NXPI - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The semiconductor provider reported $3.35 earnings per share for the quarter, beating the consensus estimate of $3.31 by $0.04. The business had revenue of $3.34 billion for the quarter, compared to the consensus estimate of $3.30 billion. NXP Semiconductors had a return on equity of 26.72% and a net margin of 16.47%.The company's quarterly revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.18 EPS. Analysts expect that NXP Semiconductors N.V. will post 12.51 EPS for the current fiscal year.

NXP Semiconductors Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 25th were issued a $1.014 dividend. This represents a $4.06 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Wednesday, March 25th. NXP Semiconductors's payout ratio is 51.13%.

Insider Activity

In other news, EVP Andrew Micallef sold 1,000 shares of the business's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $194.58, for a total value of $194,580.00. Following the completion of the transaction, the executive vice president owned 9,942 shares of the company's stock, valued at $1,934,514.36. The trade was a 9.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NXP Semiconductors

Institutional investors and hedge funds have recently modified their holdings of the stock. JPL Wealth Management LLC acquired a new position in shares of NXP Semiconductors in the 3rd quarter valued at about $26,000. SHP Wealth Management acquired a new position in shares of NXP Semiconductors in the 4th quarter valued at about $27,000. CNB Bank acquired a new position in shares of NXP Semiconductors in the 3rd quarter valued at about $28,000. Acumen Wealth Advisors LLC acquired a new position in shares of NXP Semiconductors in the 4th quarter valued at about $28,000. Finally, Jessup Wealth Management Inc acquired a new position in shares of NXP Semiconductors in the 4th quarter valued at about $29,000. Institutional investors and hedge funds own 90.54% of the company's stock.

About NXP Semiconductors

NXP Semiconductors N.V. is a global semiconductor company headquartered in Eindhoven, the Netherlands, that designs and supplies mixed-signal and standard product solutions for a broad range of end markets. The company focuses on enabling secure connections and infrastructure for embedded applications, developing technologies used across automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure segments. NXP's offerings target customers that require reliable, secure, and high-performance semiconductor components for connected devices and systems.

Product lines include microcontrollers and application processors, secure elements and authentication technologies, RF and high-power analog components, connectivity solutions, and vehicle networking and infotainment systems.

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