Why Are Analysts Behind the Curve on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)?

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) shares have experienced a bit of whiplash recently. Consider the following timeline:

  • 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?

3/29/2017
Ticker Symbol HIMX
Last Price a/o 4:00 PM EST  $                      9.28
Average Volume                4,600,000
Market Cap (mlns)  $              1,590.00
Sales (mlns) $725.00
Shares Outstanding (mlns) 168.3
Share Float (mlns) 148.8
Shortable Yes
Optionable Yes
Inside Ownership 12.30%
Short Float 9.73%
Short Interest Ratio 3.15
Quarterly Return 58.22%
YTD Return 56.13%
Year Return -20.29%

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.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

2 thoughts on “Why Are Analysts Behind the Curve on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)?”

  1. never seems to amaze me of how analysts’ can throw the bones down on the table or spreading the tea leaves of the past thrown down on a table that one can predict the future of the stock price from previous numbers of high and low of the stock without seeing why it dropped s violently as a sell off from one individual that sold off 1.5 million shares in the last or 4th quarter . Maybe it would be good to notice the that with QUALCOMM and Apple at odds over leasing and unpaid bills from apple to QUALCOMM along with the increased interest of AR and VR chips a new an growing section of Himax has not even been included in the future sales and growth of himaxs’ stock price I don t see it as reached its high yet find it has tested the stock price at $ 9.50 but must and will break threw to over the old $12.00 high. I believe these writings of Himax are outdated and are safe from 2 to more then 3 dollars off the actual price of the stocks actual value I believe it is still a buy and not overweight but we will see at the end of the quarter or the announcement of new orders for the 3d division of chips of AR and VR .This is the only writer of analyzing himax that puts it in perspective with any common sense on coming to a true analysis of Himax my personal pne is that if what I have stated holds true the stock going to $25 by the end of the year not $10

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