Semiconductor stocks are being unloaded at such a pace lately that the price of a widely-followed ETF for the group just hit a closing low not seen since September 2024. The VanEck Vectors Semiconductors exchange traded fund may be about to test the August 2024 bottom.
Semiconductor stocks show price weakness
The daily price chart looks like this:
The larger red-circled area shows Friday’s lower-than-September 2024 low and the smaller red-circled area shows where the 50-day moving average crossed below the 200-day moving average in early March, an indication of price weakness.
The ETF holds 26 stocks within the sector, among them are these four:
Microchip Technology
With Friday’s -4.11% drop, the stock slips below the early February low and the recent March re-test of that low. The 50-day moving average in August 2024 crossed below the 200-day moving average in a clear sign of price weakness.
The semiconductor company has a market capitalization of $26.19 billion. The price-earnings ratio is a steep 85. The short float is 5.64%, a higher metric than the others listed here. Microchip Technology pays a dividend of 3.76%.
NXP Semiconductors
The Netherlands-based tech stock dropped to a 12-month low with Friday’s close of $189.99 – breaking below the early February low (the red-dotted line). The 50-day moving average crossed below the 200-day moving average in late September 2024.
NXP Semiconductor has a market cap of $48.19 billion and the price-earnings ratio is 19.53. The stock is a component of the S&P 500 and of the Nasdaq 100. The company pays a dividend of 2.32%.
Teradyne
Friday’s close is lower than the earlier-in-the-month closes and marks a 52-week price low. In November 2024, the 50-day moving average crossed below the 200-day moving average and has been unable to rise above it again.
The market cap for Teradyne is $13.39 billion. The price-earnings ratio is 24.95. The debt-to-equity ratio of just .03 is very low. In early March, TD Cowen gave the stock a “buy” rating with a price target of $110.
Universal Display
The stock has managed to stay above the February lows but Friday’s -3.05% drop takes it below the 50-day moving average. That near-term measure in December 2024 slipped below the 200-day moving average, below which it has remained.
Universal Display has a market cap of $6.89 billion and trades with a price-earnings ratio of 31.22. It’s relatively lightly traded (for a Nasdaq tech stock) with average daily volume of 721,000. The company pays a 1.25% dividend.
Read the full article here
