Is Himax Technologies Inc. (HIMX) A Risky Investment?


Himax Technologies Inc. (NASDAQ:HIMX) finished Thursday with a subtraction of -$0.1 to close at $5.11, a downside of -1.92 percent. An average of 1,074,512 shares of common stock have been traded in the last five days. There was a fall of -$0.47 in the past week, and it reached a new high 14 times over the past 12 months. The last 20 days have seen an average of 1,409,393 shares traded, while the 50-day average volume stands at 1,756,349.

HIMX stock has decreased by -21.18% in the last month. The company shares reached their 1-month lowest point of $5.03 on 09/23/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $5.17 and a high of $16.50 in 52 weeks. It has reached a new high 1 time so far this year and lost -67.42% or -$10.89 in price. In spite of this, the price is down -69.03% from the 52-week high.

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Valuation Metrics

Himax Technologies Inc. (HIMX) has a trailing price-to-earnings (P/E) ratio of 1.76. The stock’s beta is 1.95. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.56, the price-to-book (PB) ratio at 0.54, and the price-to-cash flow ratio at 3.37.

The company’s most recent quarterly dividend payment was $1.25 a share, representing a up of 377.1% from $0.2620 last year. Its latest increase dividend $0.9880 reported on Wednesday May 25 2022.

Financial Health

The quick ratio of Himax Technologies Inc. for the recent quarter was 1.40, and the current ratio was 1.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.05 and a total debt to equity ratio of 0.24 for the recent quarter. Its gross profit as reported stood at $748.58 million compared to revenue of $1.55 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Himax Technologies Inc.’s return on assets was 27.60%.

Earnings Surprise

For the recent quarter, Himax Technologies Inc. had $72.3 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $433.94 million in the quarter, while revenues were grew 89.59%.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Himax Technologies Inc. (HIMX) price momentum. RSI 9-day as of the close on 22 September was 19.40%, suggesting the stock is oversold, with historical volatility in this time frame at 22.09%.

As of today, HIMX’s price is $5.30 -8.40% or -$0.47 from its 5-day moving average. HIMX is currently trading -24.08% lower than its 20-day SMA and -45.02% lower than its 100-day SMA. However, the stock’s current price level is -22.34% below the SMA50 and -54.32% below the SMA200.

The stochastic %K and %D were 5.17% and 4.80%, respectively, and the average true range (ATR) was 0.20. With the 14-day stochastic at 7.91% and the average true range at 0.23, the RSI (14) stands at 25.33%. The stock has reached -0.21 on the 9-day MACD Oscillator while the 14-day reading was at -0.32.

Analyst Ratings

Credit Suisse downgraded Himax Technologies Inc. (NASDAQ: HIMX) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Himax Technologies Inc. (HIMX) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HIMX, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 0 others rate it as a “buy”.

What is HIMX’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $11.00, with a median target of $8.85. Taking a look at these predictions, the average price target given by analysts for Himax Technologies Inc. (HIMX) stock is $8.93.


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