About to Buy Xilinx, Inc. (XLNX)? Look at These Metrics First

Analysts at Needham lifted target price for shares of Xilinx, Inc. (NASDAQ:XLNX) but repeated their Buy recommendation for the stock in their opinion released on January 24. The price target has been raised from $100 to $110. Cowen analysts again handed out a Market Perform rating to XLNX stock but they lifted target price for the shares in a flash note to investors on January 24. The price target has been raised from $81 to $105. Cowen, analysts launched coverage of XLNX stock with a Market Perform rating, according to their flash note to investors on January 24. Analysts at Mizuho issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to January 17.

In the period that ended January 31, 2019, short interest in Xilinx, Inc. (NASDAQ:XLNX) stock is on the decline. The 12.1% drop could be an indication that investors and traders expect a strength in the stock price, often as a result of a strength in the business’ fundamentals. The average analyst recommendations at 2.3 suggests buying these shares. Between January 15 and January 31, the total number of shorted shares amounted to 4.68 million shares. That was 644,689 less shares than the total of 5.33 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for XLNX at the January 31st settlement jumped to 5,850,665, as compared to 2,540,742 at the January 15th report. That brought days to cover to 1, a 52.3% decrease from the 2.096647 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Xilinx, Inc. (NASDAQ:XLNX)’s prospects. The earliest insider trade took place on 10/31/2018. Tong Vincent parted with a total of 40 thousand shares of company at average share price of $84.38. The total for the sales was set at $3.38 million. After this transaction, the Executive Vice President account balance stood at 30.22 thousand shares. The stock grew 34.74 percent since that insider sale. On 09/17/2018, Onder Emre, SVP,Product/Vertical Marketing, sold 1.73 thousand shares at a price per share of $77.15. This removed 133.78 thousand shares from the insider’s fortune and the stock saw a 47.36 percent rally in value since the news became public. This transaction left 1.42 thousand shares in the SVP,Product/Vertical Marketing account. On 08/29/2018, Sr. VP General Counsel Hagopian Catia performed a sale transaction worth $78.01 thousand. This sale at $78.01 each has eliminated 1 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 45.74 percent increase since the transaction was reported. The insider now is left with 9.27 thousand shares remaining in the account. Hagopian Catia, who performs the Sr. VP General Counsel job, sold 1 thousand shares for $73.37 thousand. The disposal occurred on 08/23/2018 was priced at $73.37 per share. The share price soared 54.95 percent since the reporting date. Hagopian Catia now left with a stake of 10.27 thousand XLNX stock worth $1.18 million after the insider selling.

Xilinx, Inc. (XLNX) is expected to jump by -10.81 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $122 price as 12-month high target. This represents a whopping 6.18 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $105, which represents a return potential of -8.62 percent when compared to the closing price of the stock of $114.9 on Monday, February 11. The lowest price target for the stock is $88 — slightly more than -23.41 percent from XLNX’s current share price.

The shares are currently floating around the first support level of $113.5. Below this, the next support is placed in the zone of $112.09. Till the time, the XLNX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 71.76 on daily chart, which may remain a cause for concern. If the price breaks below $112.09 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $115.97 mark may result into a pull-back move towards $117.03 level.

XLNX shares accumulated 1.21 points or 1.06 percent on Monday to $114.9 with a light trade volume of 2.633 million shares. After opening the session at $114.18, the shares went as high as $115.63 and as low as $113.1564, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $29.1 billion and now has 253.06 million shares outstanding. Xilinx, Inc. (XLNX) stock has gained 27.14 percent of market value in 21 trading days.

XLNX stock has a trailing 3-year beta of 1.14, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.36 a share in the trailing twelve months. The stock’s value has surged 34.91 percent year to date (YTD) against a rise of 82.9 percent in 12 month’s time. The company’s shares still trade -0.69 percent away from its 1-year high of $115.70 and 84.52 percent up from 52-week low of $62.27. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Xilinx, Inc. (XLNX) are trading at a P/E ratio of 33.81 times earnings reported for the past 12 months. The industry XLNX operates in has an average P/E of 4113.29. Its P/E ratio went as low as 18.03X and as high as 25 over the 5-year span. Further, it is sporting a 10.01 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.54. 69.6 percent is the gross profit margin for Xilinx, Inc. and operating margin sits at 30.9 percent. Along with this, the net profit margin is 27.9 percent.

XLNX will be showing off its Q4 earnings on April 24. Analysts are forecasting revenue to climb 22.2 percent to $823M in the next fiscal quarter, while earnings are seen soaring by nearly 24 percent to $0.93 per share. History has shown that shares in Xilinx, Inc. have gone up on 22 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.93 per share, better than the $0.85, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $800M, better than the $770M analysts expected. Earnings are estimated to increase by 24.9 percent this year, 11.07 percent next year and continue to increase by 18.2 percent annually for the next 5 years.