Magnachip Semiconductor Corporation [NYSE: MX] slipped around -1.58 points on Wednesday, while shares priced at $24.07 at the close of the session, down -6.16%. The company report on June 17, 2021 that Magnachip Announces Postponement of Special Meeting of Stockholders Pending Further Developments with respect to Interim Order from CFIUS.
As previously announced, on March 25, 2021, Magnachip Semiconductor Corporation (“Magnachip” or the “Company”) (NYSE: MX), the South Korean leader in display and power solutions, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with South Dearborn Limited, an exempted company incorporated in the Cayman Islands with limited liability (“Parent”) formed by an affiliate of Wise Road Capital LTD (“Wise Road”), and Michigan Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which, among other things, and subject to the terms and conditions thereof, Merger Sub will be merged with and into Magnachip (the “Merger”), with Magnachip continuing its corporate existence under the General Corporation Law of the State of Delaware as the surviving corporation in the Merger and becoming a wholly owned subsidiary of Parent. In connection with the Merger, the Company filed its definitive proxy statement on Schedule 14A with the U.S. Securities and Exchange Commission (the “SEC”) on May 7, 2021 (as amended and supplemented, the “Proxy Statement”).
As announced in Magnachip’s Form 8-K filed with the SEC on June 16, 2021, the Company received an “Order Establishing Interim Mitigation Measures” (the “Interim Order”) from the U.S. Department of Treasury on behalf of the Committee on Foreign Investment in the United States (“CFIUS”) on June 15, 2021. In light of the Interim Order, Magnachip announced the postponement of its special meeting of stockholders, which was scheduled to be held at 8:00 p.m. Eastern time on June 17, 2021, pending further developments with respect to the Interim Order.
Magnachip Semiconductor Corporation stock is now 78.03% up from its year-to-date (YTD) trading value. MX Stock saw the intraday high of $24.2785 and lowest of $23.40 per share. The company’s 52-week high price is 26.98, which means current price is +80.79% above from all time high which was touched on 04/05/21.
Compared to the average trading volume of 1.23M shares, MX reached a trading volume of 2187947 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Magnachip Semiconductor Corporation [MX]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MX shares is $28.17 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MX stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Needham have made an estimate for Magnachip Semiconductor Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 13, 2021. While these analysts kept the previous recommendation, Oppenheimer raised their target price to Outperform. The new note on the price target was released on January 08, 2021, representing the official price target for Magnachip Semiconductor Corporation stock. Previously, the target price had yet another raise from $10.50 to $11, while Citigroup kept a Neutral rating on MX stock.
The Average True Range (ATR) for Magnachip Semiconductor Corporation is set at 1.02, with the Price to Sales ratio for MX stock in the period of the last 12 months amounting to 1.95. The Price to Book ratio for the last quarter was 2.31, with the Price to Cash per share for the same quarter was set at 7.04.
How has MX stock performed recently?
Magnachip Semiconductor Corporation [MX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.61. With this latest performance, MX shares gained by 5.34% in over the last four-week period, additionally plugging by 87.02% over the last 6 months – not to mention a rise of 110.40% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MX stock in for the last two-week period is set at 49.57, with the RSI for the last a single of trading hit 48.73, and the three-weeks RSI is set at 50.19 for Magnachip Semiconductor Corporation [MX]. The present Moving Average for the last 50 days of trading for this stock 24.54, while it was recorded at 24.91 for the last single week of trading, and 18.37 for the last 200 days.
Magnachip Semiconductor Corporation [MX]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Magnachip Semiconductor Corporation [MX] shares currently have an operating margin of +6.19 and a Gross Margin at +25.10. Magnachip Semiconductor Corporation’s Net Margin is presently recorded at +11.28.
Return on Total Capital for MX is now 8.48, given the latest momentum, and Return on Invested Capital for the company is 17.57. Return on Equity for this stock inclined to 34.52, with Return on Assets sitting at 9.70. When it comes to the capital structure of this company, Magnachip Semiconductor Corporation [MX] has a Total Debt to Total Equity ratio set at 25.56. Additionally, MX Total Debt to Total Capital is recorded at 20.36, with Total Debt to Total Assets ending up at 15.21. Long-Term Debt to Equity for the company is recorded at 0.75, with the Long-Term Debt to Total Capital now at 0.59.
Reflecting on the efficiency of the workforce at the company, Magnachip Semiconductor Corporation [MX] managed to generate an average of $64,840 per employee. Receivables Turnover for the company is 5.28 with a Total Asset Turnover recorded at a value of 0.86.Magnachip Semiconductor Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.60 and a Current Ratio set at 5.00.
Earnings analysis for Magnachip Semiconductor Corporation [MX]
With the latest financial reports released by the company, Magnachip Semiconductor Corporation posted 0.13/share EPS, while the average EPS was predicted by analysts to be reported at 0.07/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 85.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Magnachip Semiconductor Corporation go to 38.00%.
Insider trade positions for Magnachip Semiconductor Corporation [MX]
There are presently around $941 million, or 85.80% of MX stock, in the hands of institutional investors. The top three institutional holders of MX stocks are: FEDERATED HERMES, INC. with ownership of 2,874,145, which is approximately -2.888% of the company’s market cap and around 1.60% of the total institutional ownership; OAKTREE CAPITAL MANAGEMENT LP, holding 2,831,537 shares of the stock with an approximate value of $68.16 million in MX stocks shares; and MORGAN STANLEY, currently with $62.45 million in MX stock with ownership of nearly 0.361% of the company’s market capitalization.
Positions in Magnachip Semiconductor Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 87 institutional holders increased their position in Magnachip Semiconductor Corporation [NYSE:MX] by around 11,753,521 shares. Additionally, 67 investors decreased positions by around 7,873,420 shares, while 7 investors held positions by with 19,446,642 shares. The mentioned changes placed institutional holdings at 39,073,583 shares, according to the latest SEC report filing. MX stock had 49 new institutional investments in for a total of 6,497,309 shares, while 27 institutional investors sold positions of 3,957,118 shares during the same period.