HIMX Stock Forecast For 2016: Algorithm Foresees Himax Leaning To Virtual Reality



Gabriel Segall is an Intern Financial Analyst at I Know First.

HIMX Stock Forecast For 2016


  • 1Why Himax Technologies (HIMX) Stock Might be a Great Pick
  • Innovation and Effectiveness throughout the market of VR
  • Himax Activity Heating Up, Expert Sees Next-Gen Displays Driving
  • Himax Fundamental Brief And Analyst Opinion

Himax Technologies, Inc. is a fabless semiconductor solution provider. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices. The Company operates through two segments: Driver IC and Non-driver products. Additionally, the Company designs and provides controllers for touch sensor displays, Liquid crystal on silicon microdisplays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scalar products for monitors and projectors, video processing IC solutions and silicon IPs.


Is Himax a Great Pick?

 HIMX Stock Forecast For 2016

(Source: Capital Cube)

Himax Technologies, Inc. is one stock that could be an interesting option for investors in 2016. The reason is that the semiconductor company is seeing solid earnings estimates and is in a good position from a Zacks Industry perspective Ranking them 51 out of 250.

Recent earnings estimates have made analysts change their position of the company to bullish for the long and short term.

In the last two months, current quarter estimates have gone up from 1 cent per share to 2 cents per share and current year estimates have continued constantly at 13 cents per share. The company currently recommended by Zacks to be held, which is also a good signal.

If investors are looking for a stock to buy in this industry Himax would be a good choice. The industry is not only in the top three but is seeing solid estimate revisions. A positive aspect of the company is that they offer a dividend yield of 3.60% and are part of a growing industry.


Himax Innovation and Effectiveness

HIMX Stock Forecast For 2016

Source: Google Images

Some important facts to highlights:

  • In a report published Thursday, Northland Capital Markets analysts Tom Sepenzis upgraded shares of HIMX from Market Perform to Outperform.
  • The firm elevated their target from $7.00 to $10.00.
  • The analysts said that not only are they in a leading market position in augmented reality but also they could have new ground breaks in the virtual reality realm.

Himax Technology (HIMX) is the best-levered play on the virtual reality and augmented reality chain, according to Morgan Stanley. The bank sees Himax make 4% of its revenue this year from VR, and 14% from AR. It has a target price of$9.50.

They have supplied display solutions to key VR/AR brands (Oculus Rift, HTC Vive, Microsoft HoloLens). The company also supplies micro projectors, OLED display solutions, and 3D depth-sensing components.

The company has increased its relationship with other companies such as Oculus Rift and HTC Vive. Himax provides OLED display driver IC total solutions to these clients because it offers complete technology in OLED driver ICs, timing controllers, and power ICs. It is estimated that the company can make more than $10 of revenue per headset. 10 when these brands start mass production in 2016. The company is also dominating the see-through display market for AR smart glasses. Himax is the company that offers the key hardware components micro projectors and sensing cameras in AR smart glasses.

On January 4, Himax announced a tech innovation providing a compact projector module (wafer-level optics + diffractive optical element) for 3D depth sensing. 3D depth sensing technology captures movements and enables users to use gesture control instead of touch screens. It is used in many devices like Kinect, HoloLens, and Galaxy S6 the people with these devices can simply use their hands to wake up the device.

One company that could become the main competitor is Magic Leap. The company is almost completely financed by Google and is part of an effort to improve current VR headsets with a light field solution. The idea of light fields is they can perfectly replicate what the eyes see. Their total investment is $542 million led by Google in October 2014 and $50 million were invested in February 2014.

Stock Analysis

HIMX Stock Forecast For 2016

(Source: Google Finance)

Another way of looking if the stock has an optimistic future is to look at some key statistics:

Himax shares increased significantly in volume. The stock closed on December 23 at $8.44, it fell 4.95%, with a volume of 3,777,505 shares. Their average amount for the last three months was 2,202,520 shares.

Their stock is trading 11.06% under its 52 week high and 49.38% over its 52 week low. They have a P/E ratio of 43.51, which is very high compared to an industry average of 23.23. The stock has outperformed the NASDAQ index by 0.7%. The company is presently valued at $1.45 billion. The stock has a 50-day moving average of $7.28 and a 200-day moving average of $7.37.

The company is expected to announce next quarter earnings on February 11, with a consensus estimate of $0.02 per share. The overall market feeling is positive as we approach the date. The last time the tech company announced earnings was on November 12. They announced earnings per share of $-0.01 against a consensus Street estimate of $-0.01, the results were the same as the expectations. This corresponds to a decrease of $0.07 compared to the same quarter of the previous fiscal year.

HIMX Stock Forecast For 2016

(Source: Yahoo finance)

Of the 13 analyst firms that cover Himax, 8 gave them a buy rating, 4 a strong buy and only 1 gave only one sell.

Morgan Stanley, which reiterated their overweight rating, has set a price target of $9.50.

In a December 21st research report, Morgan Stanley says, “We expect Himax stock to be in the spotlight during the coming 2016 CES show, given its high exposure to AR/VR smart headsets. Near-term, the 4Q15 guidance also presents upside given share gain from China’s panel makers.”


I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

I Know First published a bullish forecast on Himax. The three-month and one-year forecasts for Himax are included. The 3 Month period has a signal of 20.19 and predictability of 0.18 and for the 1 Year period has a signal of 33.20 and a higher predictability of 0.29 for the same time horizon.

HIMX Stock Forecast For 2016

Currently, Nasdaq Analyst has predicted the HIMX stock price for 2016 and 2017, they made a Strong Buy recommendation for the next period. For the moment, this is in sync with I Know First’s prediction of HIMX for the next 1 month, 3 months and 1 year.

HIMX Stock Forecast For 2016

We observe that in two articles: Seeking Alpha article and in this article there is the previous prediction of the bullish signal of HIMX which was 812.73 and the predictability 0.38, it brought returns of 11.84% in a year period.

Stock Picking

Also In this same article, I Know First’s Algorithm predicted the performance of Himax for the 90 day period between August 18th and November 18th. The article was published on the 18th of August. The bullish signal for the 3 months and 1 year periods is still going strong and since that forecast, the stock price has risen by 22.50%. 

HIMX Stock Forecast For 2016


As we can see most of the analysts are bullish on this stock and so is I Know First. The new market that Himax is entering will only add value to them which at the moment is the leader in the augmented reality. HIMX is a good buy for the short and long term.