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Tower Semiconductor Ltd. (USA) and Other Big Movers In Semiconductors
On a bad day for the market, the Nasdaq has fallen 0.1%, the S&P 500 has slipped 0.2% and the Dow has declined 0.2%.
The Semiconductors sector (XLK) is up 0.1% on a bad day for the market overall. The biggest movers in the sector are currently:
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Universal (Nasdaq:PANL) is currently at $37.92 per share after a dramatic increase of 15.5%. The company is currently trading a volume of 2.4 million shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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 debt ratio shows the proportion of assets that a company is financing through debt. PANL has a debt ratio of 7.9%, which is fairly low. A low debt ratio means the company has more available cash flow. 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.
Shares of Tower Semiconductor Ltd (Nasdaq:TSEM) are currently trading at $8.89, a steep decline of 13.9%. The company's volume is currently 50,715 shares for the day, 1.5 times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. TSEM has a high D/E ratio of 272%. This shows that the company's assets are financed primarily through debt. 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.
After a precipitous drop of 11.5%, SunPower (Nasdaq:SPWR) is now trading at a share price of $4.15. The company is trading at a volume of two million shares. This is greater than yesterday's volume of 1.8 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. SPWR's capitalization ratio is 35.7%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
Diodes (Nasdaq:DIOD) is currently trading at a share price of $18.09, a 4.3% decline. The company's volume is currently 379,669 shares for the day, 1.4 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. DIOD has a PEG ratio of 2.02. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Slipping 2.9%, EZchip (Nasdaq:EZCH) is currently trading at $28.47 per share. This morning, the company is trading a volume of 788,984 shares. 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. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. 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. EZCH's stock is trading for more than its book value with a P/B ratio of 3.17. This may be a sign that the company is overvalued. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Rising 2.2%, Volterra (Nasdaq:VLTR) is currently trading at $24.28 per share. The company's volume for the day so far is 82,107 shares, 0.3 times the current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for VLTR is 3.59, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
After an increase of 2%, Cree (Nasdaq:CREE) has reached a current price of $27.66. So far today, the company's volume is one million shares. This is on pace to fall short of yesterday's volume of 3.2 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 ratio is calculated by dividing total liabilities by total assets. CREE has a low debt ratio of 6.8%. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
The Semiconductors sector (XLK) is up 0.1% on a bad day for the market overall. The biggest movers in the sector are currently:
| Company | Market Cap | Percentage Change |
| Universal Display Corporation (Nasdaq:PANL) | $1.52 billion | +15.5% |
| Tower Semiconductor Ltd. (USA) (Nasdaq:TSEM) | $3.32 billion | -13.9% |
| SunPower Corporation (Nasdaq:SPWR) | $555 million | -11.5% |
| Diodes Incorporated (Nasdaq:DIOD) | $860.6 million | -4.3% |
| EZchip Semiconductor Ltd. (Nasdaq:EZCH) | $820.9 million | -2.9% |
| Volterra Semiconductor Corporation (Nasdaq:VLTR) | $605 million | +2.2% |
| Cree, Inc. (Nasdaq:CREE) | $3.15 billion | +2% |
Universal (Nasdaq:PANL) is currently at $37.92 per share after a dramatic increase of 15.5%. The company is currently trading a volume of 2.4 million shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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 debt ratio shows the proportion of assets that a company is financing through debt. PANL has a debt ratio of 7.9%, which is fairly low. A low debt ratio means the company has more available cash flow. 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.
Shares of Tower Semiconductor Ltd (Nasdaq:TSEM) are currently trading at $8.89, a steep decline of 13.9%. The company's volume is currently 50,715 shares for the day, 1.5 times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. TSEM has a high D/E ratio of 272%. This shows that the company's assets are financed primarily through debt. 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.
After a precipitous drop of 11.5%, SunPower (Nasdaq:SPWR) is now trading at a share price of $4.15. The company is trading at a volume of two million shares. This is greater than yesterday's volume of 1.8 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. 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. SPWR's capitalization ratio is 35.7%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
Diodes (Nasdaq:DIOD) is currently trading at a share price of $18.09, a 4.3% decline. The company's volume is currently 379,669 shares for the day, 1.4 times the average daily volume. Volume is used to evaluate how meaningful the price movement of a stock is. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. DIOD has a PEG ratio of 2.02. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Slipping 2.9%, EZchip (Nasdaq:EZCH) is currently trading at $28.47 per share. This morning, the company is trading a volume of 788,984 shares. 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. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. 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. EZCH's stock is trading for more than its book value with a P/B ratio of 3.17. This may be a sign that the company is overvalued. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio
Rising 2.2%, Volterra (Nasdaq:VLTR) is currently trading at $24.28 per share. The company's volume for the day so far is 82,107 shares, 0.3 times the current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for VLTR is 3.59, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
After an increase of 2%, Cree (Nasdaq:CREE) has reached a current price of $27.66. So far today, the company's volume is one million shares. This is on pace to fall short of yesterday's volume of 3.2 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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 ratio is calculated by dividing total liabilities by total assets. CREE has a low debt ratio of 6.8%. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
by
Investopedia Staff
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