Xilinx (XLNX) Rating Lowered to Hold at Zacks Investment Research
According to Zacks, “Xilinx reported mixed fourth-quarter fiscal 2019 results wherein revenues topped estimates but earnings missed the same. However, both metrics increased on a year-over-year basis. A strong uptick in the Communications market, banking on its Wireless business is a key driver. Growth in the Wireless market, supported by early 5G production, pre-5G deployments and LTE upgrades, is a primary catalyst. We believe Xilinx is well-positioned to tap the opportunities arising from an increase in the adoption of AI technologies, 5G connectivity, autonomous vehicles and IoTs, which will drive growth in the long run. Its shares have outperformed the industry in the past year. Nonetheless, an absence of cryptocurrency-related demand and soft demand for legacy products are a dampener. Moreover, weak memory testing market is a challenge. Further, higher mix of communications coupled with lower TME and A&D is a persistent threat to gross margins.”
XLNX has been the topic of a number of other research reports. Argus lifted their target price on Xilinx to $130.00 and gave the company a buy rating in a research report on Friday, January 25th. Needham & Company LLC lowered Xilinx from a buy rating to a hold rating in a research report on Thursday, April 25th. Mizuho lifted their target price on Xilinx from $107.00 to $140.00 and gave the company a buy rating in a research report on Friday, March 29th. Deutsche Bank dropped their target price on Xilinx from $125.00 to $120.00 and set a hold rating on the stock in a research report on Thursday, April 25th. Finally, KeyCorp lifted their target price on Xilinx from $100.00 to $110.00 and gave the company an overweight rating in a research report on Thursday, January 24th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. Xilinx presently has a consensus rating of Buy and a consensus price target of $115.52.
Xilinx (NASDAQ:XLNX) last announced its earnings results on Wednesday, April 24th. The programmable devices maker reported $0.94 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.96 by ($0.02). Xilinx had a net margin of 29.09% and a return on equity of 34.72%. The firm had revenue of $828.36 million during the quarter, compared to analyst estimates of $826.51 million. During the same period in the prior year, the business posted $0.75 EPS. The firm’s quarterly revenue was up 29.8% compared to the same quarter last year. As a group, equities analysts expect that Xilinx will post 3.87 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, June 3rd. Shareholders of record on Thursday, May 16th will be given a dividend of $0.37 per share. This is a positive change from Xilinx’s previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Wednesday, May 15th. This represents a $1.48 annualized dividend and a dividend yield of 1.29%. Xilinx’s payout ratio is 41.38%.
In other Xilinx news, SVP Mark Wadlington sold 2,241 shares of the business’s stock in a transaction that occurred on Friday, April 12th. The stock was sold at an average price of $133.10, for a total transaction of $298,277.10. Following the transaction, the senior vice president now owns 1,834 shares of the company’s stock, valued at approximately $244,105.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.16% of the stock is owned by insiders.
Several large investors have recently bought and sold shares of XLNX. Lindbrook Capital LLC acquired a new position in shares of Xilinx during the 4th quarter worth approximately $25,000. Shamrock Asset Management LLC acquired a new position in shares of Xilinx during the 1st quarter worth approximately $25,000. Jackson Grant Investment Advisers Inc. acquired a new position in shares of Xilinx during the 1st quarter worth approximately $25,000. CWM LLC increased its holdings in shares of Xilinx by 225.0% during the 1st quarter. CWM LLC now owns 221 shares of the programmable devices maker’s stock worth $28,000 after acquiring an additional 153 shares during the last quarter. Finally, Ropes Wealth Advisors LLC increased its holdings in shares of Xilinx by 42.8% during the 4th quarter. Ropes Wealth Advisors LLC now owns 357 shares of the programmable devices maker’s stock worth $30,000 after acquiring an additional 107 shares during the last quarter. 88.27% of the stock is currently owned by hedge funds and other institutional investors.
Xilinx Company Profile
Xilinx, Inc designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores.
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