Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)
- November 7, 2016, HIMX closes at $7.82 – Morgan Stanley downgrades HIMX shares from “Overweight” to “Equal-weight”.
- February 6, 2017, HIMX closes at $5.14 – Morgan Stanley downgrades HIMX shares from “Equal-weight” to “Under-weight”.
- February 10, 2017, HIMX hits its new 52-week low of $4.88.
- March 10, 2017, HIMX closes at $7.75 – Morgan Stanley upgrades HIMX shares from “Under-weight” to “Equal-weight”.
- March 27, 2017, HIMX closes at $9.44 – Morgan Stanley upgrades HIMX shares from “Equal-weight” to “Over-weight”.
Morgan Stanley is not alone in some seemingly schizophrenic analysis on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX). There are other firms that also fell in/out of love with HIMX shares, but they provided the cleanest example. One well known stock analysis website published an article wondering if the company’s shares were doomed on February 8, 2017 – two days before they hit their 52-week low. Another stock analysis website hated HIMX shares at $5 but fell in love with them at $8.
Taiwan-based Himax Technologies, Inc. (HIMX) is a semiconductor solution provider that designs and manufactures display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices and heads-up displays (HUD) for automotive. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics for AR devices, and 3D depth scanning and machine vision.
Between 2011 and 2014, Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) had impressive numbers. In 2011 HIMX EPS was $0.06 and sales were $633 million. By 2014 EPS was $0.39 and sales were $840.5 million. However, Himax failed to progress on its achievements and in 2015 EPS was $0.15 with sales of $691.8 million. However, to their credit, the number of outstanding shares has decreased since 2011 so investors experienced no dilutive effects. HIMX shares are up 36% for the month, 58% for the quarter, and up 56% YTD. There is a moderate short position on HIMX shares as 9.73% of the float represents the number of shares held short.
Still, one has to wonder if analysts are doing what we are told not to do by investment councilors – are they chasing performance?
|Last Price a/o 4:00 PM EST||$ 9.28|
|Market Cap (mlns)||$ 1,590.00|
|Shares Outstanding (mlns)||168.3|
|Share Float (mlns)||148.8|
|Short Interest Ratio||3.15|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.