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NXP Among Semiconductors' Biggest Movers on September 11, 2012
On a good day for the market, the Nasdaq has increased 0.3%, the S&P 500 is trading up 0.6% and the Dow is up 0.7%.
The Semiconductors sector (XLK) is up 0.7%, outperforming the market overall. The biggest movers in the sector so far are:
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M\x2FA-COM Technology Solutions (Nasdaq:MTSI) is at a share price of $10.63 after a sharp decline of 11.2%. So far today, 179,474 shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. MTSI has a low debt-equity ratio of 47%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
First Solar (Nasdaq:FSLR) is up 5.6% to reach a current price of $21.96 per share. This morning, 4.5 million shares have been traded,. If a stock price makes a big move up or down, volume lets us know the significance of that move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 12.3% is on the low end. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
AIXTRON SE (Nasdaq:AIXG) has increased to a share price of $15.07, a 3.1% rise. This morning, the company is trading a volume of 21,567 shares. This is 0.3 times the average volume over the last three months. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. AIXG's stock is trading for more than its book value with a P/B ratio of 2.04. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
Veeco Instruments (Nasdaq:VECO) is currently trading at $36.47 per share, a 2.6% increase. So far today, the company's volume is 180,862 shares, 0.3 times the average daily volume. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/sales ratio measures a company's stock market price by its revenues. VECO's P/S ratio of 1.83 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Increasing 2.6%, Mellanox (Nasdaq:MLNX) is trading at $104.27 per share. This morning, the company is trading a volume of 1.1 million shares. Volume is an important indicator because it indicates how significant a price shift is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. MLNX's debt ratio of 18% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
NXP (Nasdaq:NXPI) has moved up 2.5% and is currently trading at $24.14 per share. So far today, the company's volume is 460,322 shares, which is likely to result in less activity than yesterday's volume of 1.7 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt-equity (D/E) ratio is a leverage ratio. NXPI has a high D/E ratio of 376%. Companies with high D/E ratios may have difficulty attracting additional investment capital. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After an increase of 1.6%, Ultratech (Nasdaq:UTEK) has reached a current price of $32.44. The company's volume for the day so far is 37,510 shares. This is 0.2 times the current three-month average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. UTEK has a PEG ratio of 1.6, which is consistent with the industry average. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The Semiconductors sector (XLK) is up 0.7%, outperforming the market overall. The biggest movers in the sector so far are:
| Company | Market Cap | Percentage Change |
| M\x2FA-COM Technology Solutions (Nasdaq:MTSI) | $542.7 million | -11.2% |
| First Solar (Nasdaq:FSLR) | $1.81 billion | +5.6% |
| AIXTRON SE (Nasdaq:AIXG) | $1.47 billion | +3.1% |
| Veeco Instruments (Nasdaq:VECO) | $1.39 billion | +2.6% |
| Mellanox (Nasdaq:MLNX) | $4.23 billion | +2.6% |
| NXP (Nasdaq:NXPI) | $5.93 billion | +2.5% |
| Ultratech (Nasdaq:UTEK) | $844.2 million | +1.6% |
M\x2FA-COM Technology Solutions (Nasdaq:MTSI) is at a share price of $10.63 after a sharp decline of 11.2%. So far today, 179,474 shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. MTSI has a low debt-equity ratio of 47%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
First Solar (Nasdaq:FSLR) is up 5.6% to reach a current price of $21.96 per share. This morning, 4.5 million shares have been traded,. If a stock price makes a big move up or down, volume lets us know the significance of that move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 12.3% is on the low end. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
AIXTRON SE (Nasdaq:AIXG) has increased to a share price of $15.07, a 3.1% rise. This morning, the company is trading a volume of 21,567 shares. This is 0.3 times the average volume over the last three months. Volume indicates the level of interest that investors have in a company at its current price. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. AIXG's stock is trading for more than its book value with a P/B ratio of 2.04. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
Increasing 2.6%, Mellanox (Nasdaq:MLNX) is trading at $104.27 per share. This morning, the company is trading a volume of 1.1 million shares. Volume is an important indicator because it indicates how significant a price shift is. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. MLNX's debt ratio of 18% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
NXP (Nasdaq:NXPI) has moved up 2.5% and is currently trading at $24.14 per share. So far today, the company's volume is 460,322 shares, which is likely to result in less activity than yesterday's volume of 1.7 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt-equity (D/E) ratio is a leverage ratio. NXPI has a high D/E ratio of 376%. Companies with high D/E ratios may have difficulty attracting additional investment capital. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After an increase of 1.6%, Ultratech (Nasdaq:UTEK) has reached a current price of $32.44. The company's volume for the day so far is 37,510 shares. This is 0.2 times the current three-month average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. UTEK has a PEG ratio of 1.6, which is consistent with the industry average. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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