NXP Semiconductors N.V. (NXPI) Stock Is Heating Up. Time to Buy?

For the period that ended November 15, 2019, the short interest in NXP Semiconductors N.V. (NASDAQ:NXPI) stock is on the down. The 0.51% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 2.2 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 8.72 million. That number was 44,949 less shares compared with the total of 8.77 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for NXPI at the November 15th settlement retreated to 3,357,874, versus 3,831,762 at the October 31st report. That led days to cover to move at 2.598101, a 13.53% increase compared to the 2.288515 days to cover recorded at the prior short interest data release.

On November 26, 2019, NXP Semiconductors N.V. (NASDAQ:NXPI) shares lost -0.38% or -0.45 points to close at $116.63 with a heavy trading volume of 3.623 million shares. The company now has a market cap of $32.7 billion and currently has 280.7 million outstanding shares. NXP Semiconductors N.V. (NXPI) stock has accumulated 7.34 percent of market value in 21 trading days.

NXPI stock’s trailing 3-year beta is 1.22, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.39 share in the trailing 52 weeks. The stock’s value surged 59.16 percent year to date (YTD) compared to a rise of 42.34 percent in 52 week’s period. The firm’s shares are still trading -3.48 percent below its 1-year high of $120.84 and 72.48 percent up from 52-week low of $67.62. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

NXP Semiconductors N.V. (NXPI) is most likely going to rise 9.38 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $145-month high price target. This represents a whopping 24.32 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $130, which means a return possibility of 11.46 percent in comparison with the closing price of the stock of $116.63 on November 26. The lowest price set for the stock is $103 — just above -11.69 percent from NXPI share price now.

Past records have indicated that shares in NXP Semiconductors N.V. rose on 25 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at NXP Semiconductors N.V. (NASDAQ:NXPI) and observe the pattern. The earliest insider trade happened on 11/12/2019. Shull Keith M parted with a total of 25.48 thousand shares of the firm at average share price of $119.29. The total amount for the sale was set at $3.04 million. On completing this exchange, the EVP Human Resources account balance was 4.66 thousand shares. The stock lost -2.23 percent from that insider sale. On 09/10/2019, Shull Keith M, EVP Human Resources, did a sale of 4.2 thousand shares at a price of $108.14 per share. This got rid of 453.76 thousand shares from the insider’s fortune and the stock experienced a 7.85 percent rally in price since the news became public. This exchange saw 9.59 thousand shares get out from the EVP Human Resources account.

On 09/05/2019, EVP Human Resources Shull Keith M recorded a sale transaction valued at $482.17 thousand. The sale at $105.53 a share has eliminated 4.57 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 10.52 percent increase since the transaction reporting date. The company insider is left with 13.78 thousand shares remaining in the account. BONFIELD PETER L, who works as Chairman at the company, performed a sale of 10 thousand shares in a transaction worth $983.6 thousand. The disposal recorded on 08/06/2019 was priced at $98.36 per share. The stock price soared 18.57 percent since the transaction. BONFIELD PETER L currently holds a stake of 24.4 thousand in NXPI stock which is worth $2.85 million after the insider selling.

The stock is lingering around the initial support level of $115.26. After this, the following support is at the zone of $113.89. Up until the time the NXPI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.65 on the daily chart, and this may be a cause for concern. In case the price goes below $113.89 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $117.74 level may cause a pull-back move approaching $118.85 mark.

NXP Semiconductors N.V. (NXPI) shares are trading at a P/E ratio of 78.8 times earnings posted in the trailing 12 months. The industry NXPI deals with has an average P/E of 23.8. Its P/B ratio is standing at 3.5X compared to the 4.7 industry average. It is additionally sporting a 3.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 4.7. NXP Semiconductors N.V. has a 51.9% gross profit margin, with its operating margin around 7.3%. Alongside this, the company’s net profit margin currently stands at 4.5%.