Nve Corp Story

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NVEC -- USA Stock  

USD 69.26  0.44  0.64%

It looks like MagnaChip Semiconductor will be up for a correction faster as its share price went up 0.17% today to NVE's 0.33%As many rational traders are trying to avoid technology space, it makes sense to go over NVE Corporation a little further and understand how it stands against MagnaChip Semiconductor and other similar entities. We are going to analyze some of the competitive aspects of both NVE and MagnaChip.
Published over a month ago
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Will MagnaChip Semiconductor (NYSE:MX) and NVE (NASDAQ:NVEC) deliver in February?
By analyzing existing fundamental indicators between NVE and MagnaChip, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in MagnaChip with a short position in NVE. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NVE has an asset utilization ratio of 21.41 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that NVE Corporation is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Nve Corp or Magnachip is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Nve Corp dividends

A dividend is the distribution of a portion of Nve Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Nve Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Nve Corp one year expected dividend income is about $2.0 per share.
As of February 25, 2021, Payment of Dividends and Other Cash Distributions is expected to decline to about (18.8 M). In addition to that, Dividend Yield is expected to decline to 0.08.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-17.4 M-18.8 M
Dividend Yield 0.09  0.08 
Dividends per Basic Common Share 4.60  4.55 
Investing in dividend-paying stocks, such as Nve Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nve Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Nve Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Nve Corp's Liquidity

Nve Corp financial leverage refers to using borrowed capital as a funding source to finance Nve Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nve Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nve Corp's total debt and its cash.

Correlation Between Nve Corp and Magnachip Semiconductor

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Nve Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Magnachip Semiconductor to your portfolio. If Magnachip Semiconductor is not perfectly correlated to Nve Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Nve Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between NVEC and MX for more information.

Note

Are you currently holding both Nve Corp and Magnachip Semiconductor in your portfolio?
Please note if you are using this as a pair-trade strategy between Nve Corp and Magnachip Semiconductor, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Hartman James D of 1000 shares of NVE subject to Rule 16b-3

Legal trades by Nve Corp 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:
NVE insider trading alert for exercise of common stock by Hartman James D, the corporate stakeholder, on 4th of November 2020. This event was filed by Nve Corp with SEC on 2014-08-11. 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.

Is Nve Corp valued fairly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check NVE revenue. Based on the latest financial disclosure, NVE Corporation reported 21.59 M of revenue. This is 99.47% lower than that of the Technology sector and 99.61% lower than that of the Semiconductors industry. The revenue for all United States stocks is 99.77% higher than that of the firm. As for MagnaChip Semiconductor we see revenue of 758.99 M, which is 86.15% lower than that of the Semiconductors

Sector
4.1 B
NVEC21.59 Million0.44
Sector4.08 Billion83.93
MX758.99 Million15.63

NVE has 96 percent likelihood to slip below $63 in February

The jensen alpha is down to 0.33 as of today. NVE Corporation has relatively low volatility with skewness of 1.04 and kurtosis of 2.96. However, we advise all investors to independently investigate NVE Corporation to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on NVE

Whereas some firms in the semiconductors industry are either recovering or due for a correction, NVE may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of NVE or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NVE.

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 Gabriel Shpitalnik do not own shares of Nve Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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