Why NXP Semiconductors N.V. (NXPI) Stock Boomed Nearly 2.84% Today

NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the stocks that are grabbing investor focus today: skyrocketing 2.84% or (2.79 points) to $100.96 from its previous close of $98.17. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 2462417 contracts so far this session. NXPI shares had a relatively better volume day versus average trading capacity of 3.37 million shares, but with a 0.33 billion float and a -4.19% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for NXPI stock indicates that the average analyst price target is $114.89 per share. This means the stock has a potential increase of 13.8% from where the NXPI share price has been trading recently which is between $94.5956 and $98.35. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $95.

The shorts are running away from NXP Semiconductors N.V. (NXPI) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in NXPI shares. While short interest still represents only 2.46% of NXPI’s float, the number of shares shorted have fallen by -1051744. The number of shares shorted fell to 6967764 shares, down from 8019508 shares during the preceding fortnight. With average daily trading volumes at 3936372 shares, days to cover decreased to about 2.761691 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Here are Mondays worst stock-market performers as U.S.-China trade dispute escalates” and dated May 13, 2019.

During the recent trading session for NXP Semiconductors N.V. (NASDAQ:NXPI), the company witnessed their stock drop by $-1.07 over a week and tumble down $-0.23 from the price 20 days ago. When compared to their established 52-week high of $122.24, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/07/18. The recent low of $67.62 stood for a -17.41% since 12/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.17 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for NXP Semiconductors N.V., the two-week RSI stands at 52.13. This figure suggests that NXPI stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current NXPI readings is similarly very revealing as it has a stochastic reading of 28.22% at this stage. This figure means that NXPI share price today is being overbought.

Technical chart claims that NXP Semiconductors N.V. (NXPI) would settle between $99.48/share to $100.79/share level. However, if the stock price goes below the $95.73 mark, then the market for NXP Semiconductors N.V. becomes much weaker. If that happens, the stock price might even plunge as low as $93.28 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -3.9. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BofA/Merrill lifted target price for shares of NXPI but were stick to Buy recommendation for the stock in their opinion released on May 01. The price target has been raised from $105 to $125. Mizuho analysts have lowered their rating of NXP Semiconductors N.V. (NASDAQ:NXPI) stock from Buy to Neutral in a separate flash note issued to investors on February 08. Analysts at Nomura released an upgrade from Neutral to Buy for the stock, in a research note that dated back to January 17.

NXPI equity has an average rating of 2.41, with the figure leaning towards a bullish end. 22 analysts who tracked the company were contacted by Reuters. Amongst them, 9 rated the stock as a hold while the remaining 13 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 11 analysts rated NXP Semiconductors N.V. (NASDAQ:NXPI) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, NXPI stock price is currently trading at 10.71X forward 12-month Consensus EPS estimates, and its P/S ratio is 4.23 while for the average stock in the same group, the multiple is 8.22. NXP Semiconductors N.V. current P/E ratio of 20.35 means it is trading at a discount against its industry’s 166.15. In the past 5 years, this ratio for the stock has been fluctuating between 13.81 and 170.35.

NXP Semiconductors N.V. (NXPI)’s current-quarter revenues are projected to climb by nearly -3.92% to hit $2.2 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -4.34% from $9.41 billion to a noteworthy $9 billion. At the other end of the current quarter income statement, NXP Semiconductors N.V. is expected to see its adjusted earnings surge by roughly 41.6% to hit $1.77 per share. For the fiscal year, NXPI’s earnings are projected to climb by roughly 4.97% to hit $7.82 per share.