National Instruments Corporation Stock Price and Value Analysis

Should you buy National Instruments Corporation stock? (NasdaqGS:NATI). Let's see how it does in our automated value investing analysis system.

NATI Free Cash Flow Trend

Free Cash Flow trendline for NATI
Free Cash Flow trendline for National Instruments Corporation

Based on historical returns, we believe that National Instruments Corporation can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company has a high dividend yield.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.

Inside the NATI Numbers

NATI Price
(National Instruments Corporation stock price per share)
$42.75
[?] NATI Fair Price
(based on intrinsic value)
$16.77
[?] NATI Safety Price (based on a variable margin of safety) $10.06
[?] PE Ratio versus Sector 138% higher than other Technology stocks
[?] PE Ratio versus Industry 152% higher than other Unknown stocks
[?] Cash Yield 2.99%
[?] Free Cash Flow Jitter 74%
[?] Dividend Yield 3%
Shares Shorted 4,073,674

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 4,073,674 shares shorted. With 121,174,564 shares available for purchase and an average trading volume over the past 10 trading days of 388,042, it would take at least 10.498 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is National Instruments Corporation Stock on Sale?

We believe that National Instruments Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

National Instruments Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy NATI Stock?

Does National Instruments Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.