Daily Stock Pick: Xperi Corp.
I'm now looking for a second technology sector representative for my new Ivy portfolio.
That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
Today I'm reviewing a small-cap semi-conductor equipment and materials firm, named Xperi Corp. Its trading ticker symbol is XPER.
Xperi Corp is a provider of semiconductor packaging and interconnect solutions and intellectual property products to original equipment manufacturers. Its technologies include proprietary mobile and computational imaging in the United States, South Korea, Taiwan, Japan, and internationally.
The company operates in two segments, Product Licensing; and Semiconductor and IP Licensing. The Product Licensing segment licenses technologies related to audio, digital radio, and imaging solutions under the DTS, HD Radio, and FotoNation brands. It delivers software and hardware based solutions to its customers or to their suppliers. This segment serves consumer electronics product manufacturers.
The Semiconductor and IP Licensing segment develops and licenses semiconductor technologies and intellectual property to semiconductor manufacturers, foundries, subcontract assemblers, and others. It develops and monetizes solutions for semiconductors that are used in products, such as smartphones, as well as computers and servers used in datacenters. This segment also provides engineering services.
The company was formerly known as Tessera Holding Corporation and changed its name to Xperi Corporation in February 2017.
Xperi Corporation was founded in 1990 and is headquartered in San Jose, California.
I use three key data points to gauge the value of any dividend equity like Xperi Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
XPER Price
Xperi's price per share closed at $20.71Friday.A year ago its price was $22.65.So price fell $1.94 per share last year, or 8.56%.
Assuming Xperi's stock trades in the range of $12 to $30 next year,Xperi's recent $20.71 price could move up by $4.29 and grow to $26.00 by mid-January, 2020.
XPER Dividends
Xperi's most recent quarterly dividend was $0.20 declared October 25th and paid December 19th.
That $0.20 quarterly stipend equals an annual payout of $.80 yielding 3.86% at Friday's $20.71 closing price.
Gains For XPER?
Adding the $0.80 annual estimated dividend to my estimated $4.29 annual price upside estimate for Xperi Corp (XPER) shows a $5.09 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Just under $1,000.00 invested today at the $20.71 recent price would buy us 48 XPER shares.
A $10 broker fee paid half at purchase and half at sale costs $0.21 per share.
Subtract that $0.21 brokerage cost from the estimated $5.09 gross annual gain leaves a net gain of $4.88 X 48 shares
= $234.24
for about 23.56% net gain on a $994.08 investment.
Therefore, Xperi Corp whose trading ticker symbol is XPER, now shows a possible 23.56% net gain including a 3.86% dividend yield.
Five brokers cover this stock:
Four say "buy' XPER shares.
One expects XPER stock to "Outperform" peers.
Therefore, you can look at Xperi Corp (XPER) and see it has made money, is making money, and could rise to net a 23.56% annual gain including that 3.86% estimated dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if Xperi Corp (XPER) is worth your time and money.
This article was compiled by Rydlun & Co., LLC from data derived from ycharts.com; finance.yahoo.comom; analyst median target price by YCharts.
Disclaimer: This article is for ...
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Interesting pick. How/when did this company first get on your radar?