NXP Semiconductors (NASDAQ:NXPI) Stock Price Breaks Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• NXP shares fell 7.8% and slipped below their 200-day moving average, trading around $244.43 versus the $246.45 average.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $295.78; ratings include 16 Buys, nine Holds, and one Sell.
• Quarterly results topped estimates, with EPS of $4.20 and revenue of $3.79 billion, up 19.3% year over year. The company also authorized a $5 billion share buyback.

Shares of NXP Semiconductors N.V. (NASDAQ:NXPI - Get Free Report) crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred 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 traded.

Analyst Ratings Changes

A number of brokerages have weighed in on NXPI. Needham & Company LLC restated a "buy" rating and issued a $300.00 target price on shares of NXP Semiconductors in a research report on Wednesday, October 28th. Wall Street Zen downgraded shares of NXP Semiconductors from a "buy" rating to a "hold" rating in a report on Saturday, October 17th. TD Cowen upped their price target on shares of NXP Semiconductors from $275.00 to $280.00 and gave the stock a "buy" rating in a report on Wednesday, October 28th. Morgan Stanley dropped their price target on NXP Semiconductors from $338.00 to $313.00 and set an "overweight" rating for the company in a research note on Wednesday, October 28th. Finally, Susquehanna raised their price objective on NXP Semiconductors from $210.00 to $250.00 and gave the company a "neutral" rating in a report on Tuesday, July 21st. Sixteen equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $295.78.

NXP Semiconductors Stock Down 7.8%

The firm has a market capitalization of $61.61 billion, a price-to-earnings ratio of 19.22, a P/E/G ratio of 0.90 and a beta of 1.83. The stock has a fifty day moving average of $235.65 and a two-hundred day moving average of $246.45. 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $0.08. The business had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.76 billion. NXP Semiconductors had a return on equity of 28.57% and a net margin of 23.40%. NXP Semiconductors's revenue for the quarter was up 19.3% compared to the same quarter last year. During the same period last year, the company earned $3.11 EPS. Sell-side analysts anticipate that NXP Semiconductors N.V. will post 13.81 earnings per share for the current year.

NXP Semiconductors Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Stockholders 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 annualized dividend and a dividend yield of 1.7%. NXP Semiconductors's dividend payout ratio is presently 31.84%.

NXP Semiconductors declared that its Board of Directors has initiated a share buyback program on Tuesday, October 27th that authorizes the company to repurchase $5 billion in shares. This buyback authorization authorizes the semiconductor provider to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at NXP Semiconductors

In related news, EVP Christopher Jensen sold 3,355 shares of NXP Semiconductors stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $240.00, for a total value of $805,200.00. Following 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Micallef sold 1,000 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $226.04, for a total value of $226,040.00. Following the completion of the sale, the executive vice president owned 7,942 shares in the company, valued at $1,795,209.68. The trade was a 11.18% decrease in their ownership of the stock. 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.

Institutional Investors Weigh In On NXP Semiconductors

Several large investors have recently modified their holdings of NXPI. BlackRock Inc. acquired a new stake in shares of NXP Semiconductors during the 2nd quarter worth approximately $6,716,412,000. State Street Corp lifted its position 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 valued at $3,298,932,000 after acquiring an additional 702,099 shares during the period. Bank of America Corp DE acquired a new position in shares of NXP Semiconductors during the 2nd quarter valued at $1,169,846,000. Van ECK Associates Corp bought a new position in NXP Semiconductors during the second quarter worth $1,167,458,000. Finally, Jupiter Topco LLC bought a new position in NXP Semiconductors during the second quarter worth $742,385,000. 90.54% of the stock is currently owned by institutional investors and hedge funds.

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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