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NXP Among Semiconductors' Biggest Movers on September 27, 2012
The Nasdaq has climbed 0.4%, the S&P 500 has risen 0.3% and the Dow has been relatively flat after the morning's trading.
The biggest movers in the Semiconductors sector (XLK) (+0.4%) are:
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NXP (Nasdaq:NXPI) has increased to a share price of $25.20, a 6.1% rise. So far today, 1.1 million shares have changed hands. A stock's volume conveys how excited investors are about it. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for NXPI is 84.5%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 4.2%, First Solar (Nasdaq:FSLR) is trading at $21.77 per share. The company's volume for the day so far is 2.6 million shares, 0.4 times its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for FSLR is 0.56 because the stock is trading for less than its book value. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio
AIXTRON SE (Nasdaq:AIXG) is currently trading at $13.54 per share, a 4.2% increase. The company's volume for the day so far is 65,849 shares. This is about the same trading activity as there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. 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. Dividend yield measures the income that a stock will generate for an investor. AIXG has a low dividend yield of 1.7%. A company with a low dividend yield may be a safer investment in the long run. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Due Diligence On Dividends
Volterra (Nasdaq:VLTR) has moved up 3.9% and is currently trading at $21.92 per share. So far today, the company's volume is 92,132 shares, 0.2 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. A company's investment value can be estimated using valuation ratios such as 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. VLTR has a high P/S ratio of 3.59. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Cavium (Nasdaq:CAVM) has risen 3.1% to hit a current price of $33.53 per share. So far today, the company's volume is 194,374 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The debt-equity ratio of 10% is relatively low. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After a decline of 2.8%, Rambus (Nasdaq:RMBS) has hit a share price of $5.14. At 396,281 shares, the company's volume so far today is 0.3 times the current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 26.8% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Mellanox (Nasdaq:MLNX) is up 2.8% to reach a current price of $103.25 per share. The company is trading at a volume of 682,488 shares. This is a sign that there will be less trading activity than there was yesterday. 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. 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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. MLNX has a debt ratio of 18%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The biggest movers in the Semiconductors sector (XLK) (+0.4%) are:
| Company | Market Cap | Percentage Change |
| NXP (Nasdaq:NXPI) | $5.98 billion | +6.1% |
| First Solar (Nasdaq:FSLR) | $1.82 billion | +4.2% |
| AIXTRON SE (Nasdaq:AIXG) | $1.31 billion | +4.2% |
| Volterra (Nasdaq:VLTR) | $537 million | +3.9% |
| Cavium (Nasdaq:CAVM) | $1.62 billion | +3.1% |
| Rambus (Nasdaq:RMBS) | $585.6 million | -2.8% |
| Mellanox (Nasdaq:MLNX) | $3.99 billion | +2.8% |
NXP (Nasdaq:NXPI) has increased to a share price of $25.20, a 6.1% rise. So far today, 1.1 million shares have changed hands. A stock's volume conveys how excited investors are about it. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for NXPI is 84.5%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Increasing 4.2%, First Solar (Nasdaq:FSLR) is trading at $21.77 per share. The company's volume for the day so far is 2.6 million shares, 0.4 times its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. The P/B ratio for FSLR is 0.56 because the stock is trading for less than its book value. This could mean that either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio
AIXTRON SE (Nasdaq:AIXG) is currently trading at $13.54 per share, a 4.2% increase. The company's volume for the day so far is 65,849 shares. This is about the same trading activity as there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. 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. Dividend yield measures the income that a stock will generate for an investor. AIXG has a low dividend yield of 1.7%. A company with a low dividend yield may be a safer investment in the long run. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Due Diligence On Dividends
Volterra (Nasdaq:VLTR) has moved up 3.9% and is currently trading at $21.92 per share. So far today, the company's volume is 92,132 shares, 0.2 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. A company's investment value can be estimated using valuation ratios such as 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. VLTR has a high P/S ratio of 3.59. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Cavium (Nasdaq:CAVM) has risen 3.1% to hit a current price of $33.53 per share. So far today, the company's volume is 194,374 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The debt-equity ratio of 10% is relatively low. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
After a decline of 2.8%, Rambus (Nasdaq:RMBS) has hit a share price of $5.14. At 396,281 shares, the company's volume so far today is 0.3 times the current three-month average. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 26.8% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Mellanox (Nasdaq:MLNX) is up 2.8% to reach a current price of $103.25 per share. The company is trading at a volume of 682,488 shares. This is a sign that there will be less trading activity than there was yesterday. 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. 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 debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. MLNX has a debt ratio of 18%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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