NEW YORK (TheStreet) -- Shares of Himax Technologies (HIMX) - Get Himax Technologies, Inc. Sponsored ADR Report fell 6.73% to $8.64 in morning trading Thursday as shares sold off after three straight days of gains.
The stock climbed this week after Bank of America/Merrill Lynch named the semiconductor company as a top pick for 2015 on Monday.
Bank of America/Merrill Lynch analyst Daniel Heyler named the company as his top pick in display ICs. The firm increased its price target on the stock to $12.50 and expects earnings per share of $1.
Exclusive Report:Jim Cramer’s Best Stocks for 2015
Himax is scheduled to report its fourth-quarter and full-year 2014 earnings before the market open on Thursday, February 12.
More than 2.3 million shares had changed hands as of 10:43 a.m., compared to the daily average volume of 3,544,360.
Separately, TheStreet Ratings team rates HIMAX TECHNOLOGIES INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HIMAX TECHNOLOGIES INC (HIMX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HIMX's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 15.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HIMX has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
- HIMAX TECHNOLOGIES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HIMAX TECHNOLOGIES INC increased its bottom line by earning $0.35 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.35).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, HIMAX TECHNOLOGIES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: HIMX Ratings Report