Daily Stock Analysis: National Instruments Corporation

By Fredrik Arnold

Wednesday, June 15, 2022 11:00 AM EDT

National Instruments Corp, known by the ticker symbol NATI is a Mid-cap Software Application firm, operating in the technology business sector. This is my first-ever report on NATI for this Viital portfolio, but NATI was reviewed and selected for one of my previous 6 portfolios.

National Instruments provides testing and measurement equipment and integrated, software-led solutions to serve high-complexity automated testing in late product development.

NI serves a long tail of more than 30,000 customers in myriad end markets but focuses on the semiconductor, transportation, and aerospace and defense verticals.

National Instruments Corporation has strategic agreements with Konrad Technologies, Inc. to develop test systems and solutions for autonomous driving software and hardware validation; and Foretellix Ltd. to enhance the safety of advanced driver-assistance systems and autonomous vehicles.

The company was incorporated in 1976 and is headquartered in Austin, Texas.

Three key data points gauge any dividend equity or fund such as The National Instruments Corp (NATI).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

NATI Price

National’s price per share was $32.02 as of yesterday's market close. One year ago its price was $42.55. Therefore, National’s share price fell $10.53 or about 24.75% in the past year.

If National’s stock trades in the range of $30.00 to $45.00 this next year, its recent $32.02 share price might rise by $11.98 to reach $44.00 by June 15, 2023. My $11.98 upside estimate is $0.83 under the median of target estimates from six analysts covering NATI for brokerages.

NATI Dividends

National’s most recently declared quarterly dividend of $0.28 was paid out May 31, 2022 to shareholders on record as of May 6th.

NATI initiated their first quarterly dividend of $0.02 as of August 29, 2003. The Q dividend has increased generally annually to $0.28 first paid as of February 28, 2022. That resulting $1.12 annual payout is calculated to deliver a 3.5% annual yield per yesterday’s $32.02 share price.

NATI Returns

Adding the $1.12 NATI annual dividend to my estimated one-year price upside estimate of $11.98 shows a $13.10 potential gross gain, per share, to be reduced by any costs to trade NATI shares.

At yesterday's $32.02 closing price per share, a little under $1000 would buy 31 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $13.10 gross gain estimate per share results in a net gain of $12.78 X 31 shares = $396.18 for a 39.6% net gain including a 3.5% forward looking dividend yield.

So it is that National Instruments Corp shows a possible 39.96% net gain including a 3.5% forward-looking dividend yield.

Over the next year at this time our $1000 investment in National Instruments Corp shares could generate $35.00 in cash dividends. Of course, a single share of NATI stock bought at yesterday's $32.02 price is $2.98 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up NATI shares based on their forward looking dividends for the year 2022. The forthcoming annual dividends from $1K invested are $2.98 greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of National Instruments Corp (NATI). Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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