Here is why Magnachip Semiconductor Corporation (MX) stock soared on Tuesday?

Magnachip Semiconductor Corporation (MX) shares soared 5.04% in after-hours on Tuesday, December 21, 2021, and closed at $19.80. Even in the regular trading session of Tuesday, MX’s stock gained 3.17%. MX shares have risen 46.69% over the last 12 months, and they have moved up 5.66% in the past week. Over the past three months, the stock has gained 6.14%, while over the past six months, it has declined 21.52%.

Let’s discuss its recent news and developments.

#1 Small-Cap Uranium Stock for Ultra-Fast Gains in 2024

We've uncovered THE ONE small-cap uranium stock that has unearthed a near-surface, high-grade uranium discovery in the Saudi Arabia of Uranium — Canada's prolific Athabasca Basin. Best of all, this small-cap uranium stock is currently flying just below Wall Street's radar… giving you the early-entry opportunity around US$0.30 per share. But that won't last long. Drills are turning right now with results set to be released to the market very, very soon.

Learn all about it in this brand new FREE online report.
Sponsored

>> 7 Top Picks for the Post-Pandemic Economy << 

MX recent stock repurchase program

On December 21, 2021, the board of directors of Magnachip Semiconductor Corporation (MX) authorized the Company to repurchase up to $75 million of the Company’s common stock. The Company has entered into an accelerated stock repurchase agreement with JPMorgan Chase Bank, National Association to repurchase an aggregate of $37.5 million of Magnachip’s common stock.

Read More

MX &Wise Road Capital terminated the merger agreement

On December 13, 2021, Magnachip Semiconductor Corporation (MX), South Dearborn Limited, and Michigan Merger Sub, Inc. (Wise Road), announced that they received permission from the Committee on Foreign Investment in the United States (CFIUS) to withdraw their joint CFIUS filing about their proposed transaction and will be terminating their previously announced definitive merger agreement.

All parties were unable to obtain CFIUS’s approval for the merger. South Dearborn will pay the Company a termination fee of $70.2 million, of which $51 million will be paid promptly and $19.2 million will be deferred up to March 31, 2022.

MX latest financial results

On October 25, 2021, Magnachip Semiconductor Corporation (MX) reported its financial results for the third quarter of 2021.

Q3 2021 financial highlights

  • MX reported total revenue of $127 million in Q3 2021 compared to $124.8 million in Q3 2020.
  • The gross profit margin for the third quarter was 36.7% compared to 23% in Q3 2020.
  • Total operating expenses were $26.6 million in Q3 2020 compared to $25.36 million in Q3 2020.
  • It earned a GAAP net income of $10.8 million or $0.23 per diluted share in Q3 2021 compared to $272,962 in Q3 2020.
  • Adjusted EBITDA was $26.36 million in Q3 2021 compared to $11.73 million in Q3 2020.

    >> 7 Top Picks for the Post-Pandemic Economy << 

Conclusion

Magnachip stock went up after the company announced an aggressive share repurchases program. We can expect it to continue its positive performance on Wednesday as well.

Most Popular

Related posts