Xilinx, Inc. (XLNX) Giving Traders A Second Chance To Buy

Xilinx, Inc. (NASDAQ:XLNX) stock ended December 06, 2018 with a fresh -2.5% decline. It was last seen at $89.01, claiming a stock-market value of $22.52B. The price went up as high as $89.05 but also was $85.91 at one point in the session. Trading activity significantly improved as the volume at ready counter increased to 4,539,566 shares versus 3,340,710 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,671,773 shares. The stock is now 42.94% above against its bear-market low of $62.27 on February 09, 2018. It has retreated -6.93% since it’s 52-week high of $95.18 reached in December. Now the market price is up 30.09% on the year and up 32.02% YTD.

XLNX’s 50 day simple moving average (SMA 50) price is $82.56 and its 200-day simple moving average (SMA 200) price is $73.87. The company’s stock currently has a total float of 252.6M shares. Its weekly volatility is hovering around 2.9% and felt 3.3% volatility in price over a month. On the upside, the share price will test short term resistance at around $90.07. On a downside, the stock is likely to find some support, which begins at $86.93. The failure to get near-term support could push it to $84.85.

Separately, it has been reported that multiple insider activity took place at Xilinx, Inc. (XLNX). Executive Vice President Tong Vincent sold 40,000 shares for $30,223 in transaction occurred on 2018/10/31. After making this transaction, the Executive Vice President owns a direct stake of 3,375,200 shares, worth $2,690,149, as per the last closing price. On 2018/09/17 Onder Emre, SVP,Product/Vertical Marketing at XLNX, dumped 1,734 shares at an average price of $77.15 per share. The selling total is valued at $126,305.

Sr. VP General Counsel, Hagopian Catia had divested 1,000 shares for $9,271 through a trade on 2018/08/29. Following this activity, the insider holds 78,010 shares worth $825,212 as of recent close. Wall Street’s most bullish Xilinx, Inc. (NASDAQ:XLNX) analysts are predicting the share price to blow past $110 per share during the next 12 months. The current median share price forecast by them is $85, suggesting that the stock could increase -4.51% in that time frame. The average price target of $86.52 calls for a nearly -2.8% increase in the stock price.

It had seen a positive analyst call from Susquehanna, which upgraded the stock from Neutral to Positive on November 13. Analysts at BofA/Merrill, maintained the company shares at Buy on November 08 but switched target price from $95 to $110. Analysts at William Blair, made their first call about the stock on October 26, recommending it is Mkt Perform. Barclays, reiterated their call for Equal Weight, on October 25. On the other hand, they had set new target price to $75 versus $60.

When looking at valuations, Xilinx, Inc. (XLNX) has a pricey P/E of 27.9x as compared to industry average of 7.69x. Moreover, it trades for 25.29 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 9.21x price/book and 8.23x price/sales. Compared to others, Xilinx, Inc. is in a different league with regards to profitability, having net margins of 21.3%. To put some perspective around this, the industry’s average net margin is 21.22%. XLNX’s ROE is 24.6%, which is also considerably better than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 4.3. The stock has a debt/capital of 0.7.

Shares of Xilinx, Inc. (XLNX) have gained 32.2% since the company’s Mar-18 earnings report. Over the past 12 fiscal quarters, Xilinx, Inc. (NASDAQ:XLNX) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 0 quarters (0%), whereas at 2 occasion EPS met analyst expectations. XLNX last reported earnings on October 24, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.87 per share, -94.29% change on the same period last year. That was better than consensus for $0.75. Revenue for the recent quarter stood at $746.25 million, up 20% on last year and above the $710.34 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $645 million to $656.57 million, which should be compared with $0 generated last year.