Trade-Ideas LLC identified Himax Technologies ( HIMX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Himax Technologies as such a stock due to the following factors:

  • HIMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.9 million.
  • HIMX has traded 1.4 million shares today.
  • HIMX is down 3.3% today.
  • HIMX was up 5.4% yesterday.

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More details on HIMX:

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. The stock currently has a dividend yield of 3%. HIMX has a PE ratio of 27. Currently there are 6 analysts that rate Himax Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Himax Technologies has been 3.4 million shares per day over the past 30 days. Himax has a market cap of $1.7 billion and is part of the technology sector and electronics industry. Shares are up 25.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Himax Technologies as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • HIMX's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
  • HIMAX TECHNOLOGIES INC has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. 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 reported lower earnings of $0.15 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.40 versus $0.15).
  • The gross profit margin for HIMAX TECHNOLOGIES INC is currently lower than what is desirable, coming in at 28.08%. Regardless of HIMX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HIMX's net profit margin of 7.25% is significantly lower than the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, HIMAX TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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