Inphi Corporation (NYSE:IPHI) shares fell to a low of $119.47 before closing at $122.78. Intraday shares traded counted 0.57 million, which was 57.42% higher than its 30-day average trading volume of 1.33M. IPHI’s previous close was $119.65 while the outstanding shares total 48.22M. The firm has a beta of 1.35. The stock’s Relative Strength Index (RSI) is 50.80, with weekly volatility at 3.99% and ATR at 5.26. The IPHI stock’s 52-week price range has touched low of $55.72 and a $133.47 high. The stock traded higher over the last trading session, gaining 2.62% on 07/29/20.
Investors have identified the Semiconductors company Inphi Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.95 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Inphi Corporation (IPHI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IPHI, the company has in raw cash 100.02 million on their books with 220.77 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 399041000 million total, with 327317000 million as their total liabilities.
IPHI were able to record 21.57 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -182.7 million. In cash movements, the company had a total of 35.01 million as operating cash flow.
Potential earnings growth for Inphi Corporation (IPHI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Inphi Corporation recorded a total of 139.43 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 41.03% coming in sequential stages and their sales for the third quarter increasing by 26.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 65.73 million trying to sell their products during the last quarter, with the result yielding a gross income of 73.7 million. This allows shareholders to hold on to 48.22M with the revenue now reading -0.44 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.23 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.06 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IPHI sounds very interesting.
Is the stock of IPHI attractive?
In related news, President & CEO, Tamer Ford sold 31,800 shares of the company’s stock in a transaction that recorded on May 18. The sale was performed at an average price of 108.71, for a total value of 3,456,965. As the sale deal closes, the Sr. V.P. of Worldwide Sales, Roach Charles now sold 10,000 shares of the company’s stock, valued at 1,050,316. Also, Chief Financial Officer, EDMUNDS JOHN sold 81,018 shares of the company’s stock in a deal that was recorded on May 13. The shares were price at an average price of 109.33 per share, with a total market value of 8,857,816. Following this completion of acquisition, the President & CEO, Tamer Ford now holds 30,000 shares of the company’s stock, valued at 3,299,114. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.80%.
14 out of 16 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Inphi Corporation. 1 analysts has assigned a Sell rating on the IPHI stock. The 12-month mean consensus price target for the company’s shares has been set at $125.29.