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Himax Technologies Inc (HIMX) is not a strong buy at the moment for a long-term beginner investor with $50,000-$100,000 available. The technical indicators are bearish, the financial performance shows significant declines, and there are no positive catalysts or strong trading signals to suggest immediate upside potential. A hold position is recommended until better entry points or positive developments arise.
The technical indicators for HIMX are bearish. The MACD is below 0 and negatively expanding, the RSI is neutral at 37.759, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the key pivot level of 7.641, with support at 7.332 and resistance at 7.95.

No recent news, no significant hedge fund or insider trading trends, and no congress trading data available. The options market shows some bullish sentiment, but this is not enough to outweigh the negative factors.
Morgan Stanley downgraded the stock to Equal Weight, citing weaker demand in key sectors, gross margin pressure, and a lack of growth drivers. Financial performance in Q4 2025 showed significant declines in revenue (-14.39% YoY), net income (-74.25% YoY), and EPS (-71.43% YoY). Technical indicators are bearish, and there are no recent positive developments.
In Q4 2025, Himax reported a revenue decline of -14.39% YoY to $203.08M, net income dropped -74.25% YoY to $6.34M, and EPS fell -71.43% YoY to $0.02. Gross margin also slightly declined to 30.38%. These results indicate significant financial challenges.
Morgan Stanley downgraded HIMX to Equal Weight from Overweight, maintaining a price target of $8. The downgrade was due to weaker demand in key sectors, rising costs, and a lack of growth drivers. This indicates a cautious outlook from analysts.