Magnachip Story

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MX -- USA Stock  

USD 25.05  0.78  3.02%

As many of us are excited about technology space, it is fair to break down Magnachip Semiconductor Corp within current market trends. Although we do see a rise in the economy, for short-term oriented investors. it may not be the right time to get in. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Strong basic indicators of the company may also suggest signals of long term gains for Magnachip investors. The next fiscal quarter end is expected on the 31st of March 2021. The stock experiences an active upward rally.
Published over two weeks ago
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Our current technical analysis of Magnachip Semiconductor Corp (NYSE:MX)
The company's average rating is Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Magnachip Semiconductor market sentiment investors' perception of the future value of Magnachip. Let us look at a few aspects of Magnachip technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Magnachip Semiconductor Corp. In general, we focus on analyzing Magnachip Semiconductor stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Magnachip Semiconductor's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Magnachip Semiconductor's intrinsic value. In addition to deriving basic predictive indicators for Magnachip Semiconductor, we also check how macroeconomic factors affect Magnachip Semiconductor price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Magnachip Semiconductor's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Magnachip Semiconductor in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Magnachip Semiconductor. Your research has to be compared to or analyzed against Magnachip Semiconductor's peers to derive any actionable benefits. When done correctly, Magnachip Semiconductor's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Magnachip Semiconductor.

How does Magnachip Stands against Peers?

Analyzing Magnachip Semiconductor competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Magnachip Semiconductor across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Magnachip Semiconductor Competition Details

How Magnachip utilizes its cash?

To perform a cash flow analysis of Magnachip Semiconductor, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Magnachip Semiconductor is receiving and how much cash it distributes out in a given period. The Magnachip Semiconductor cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Magnachip Semiconductor Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Magnachip Semiconductor reported Net Cash Flow from Operations of 7.47 Million in 2020

Payment of 1391 shares by Park Shin Young of Magnachip Semiconductor subject to Rule 16b-3

Legal trades by Magnachip Semiconductor insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Magnachip insider trading alert for payment of common stock by Park Shin Young, the corporate stakeholder, on 16th of March 2021. This event was filed by Magnachip Semiconductor C with SEC on 2021-03-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Magnachip Semiconductor Semi Variance

Magnachip Semiconductor Corp has current Semi Variance of 7.05. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.

Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Variance 
 = 
SUM(RET DEV)2 
N(ZERO) 
 = 
7.05
SUM = Summation notation
RET DEV = Actual return deviation over selected period
N(ZERO) = Number of points with returns less than zero
Let's now compare Magnachip Semiconductor Semi Variance to its closest peers:
MX
ADI
DIOD
MXL
MX7.05
ADI4.3
DIOD11.62
MXL18.59

Can Magnachip Semiconductor build up on the current rise?

The mean deviation is down to 2.67 as of today. Magnachip Semiconductor Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Magnachip Semiconductor Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Magnachip Semiconductor future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magnachip Semiconductor's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Magnachip Semiconductor's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

While many of the other players within the semiconductors industry are still a little expensive, even after the recent corrections, Magnachip Semiconductor may offer a potential longer-term growth to investors. To conclude, as of the 26th of March 2021, our present 30 days buy-hold-sell advice on the company is Strong Buy. We believe Magnachip Semiconductor is currently undervalued with very low probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Magnachip Semiconductor Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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