NXP Semiconductors NV (NASDAQ:NXPI) announced that effective December 7, 2015 Dan Durn will become executive vice president and Chief Financial Officer of NXP. Peter Kelly, NXP’s current CFO, has expressed a desire to retire in 2017 and the appointment of Mr. Durn is part of the succession plan for the company. Mr. Kelly will continue to report to Rick Clemmer, NXP’s CEO and will continue to be a key member of the NXP Management Team. In his new role Mr. Kelly will focus on Strategy and M&A, as well as ensuring a successful integration with Freescale.
“The potential of the merger was a key factor in attracting Dan to join NXP,” said Rick Clemmer, NXP Chief Executive Officer. “I have known Dan for many years and am confident his deep core competence in semiconductors and leadership skills will further strengthen our management team, support our long term growth and enhance our shareholder appreciation. The retention of Dan from Freescale gives us a world class semiconductor CFO while allowing us a suitable transition period. I am very pleased that Peter is staying with the company to help Dan with the transition and ensure we will not miss a beat in our ambitions.”
Before joining NXP, Mr. Durn was senior vice president and CFO of Freescale Semiconductor. Prior to Freescale, he served as CFO and executive vice president of finance and administration at Globalfoundries, the industry’s second largest semiconductor foundry. Prior to Globalfoundries, Durn was head of M&A and strategy at Advanced Technology Investment Company (ATIC), a$15 billion private equity company. He also served as vice president in investment banking at Goldman, Sachs & Company and was a member of their merger leadership group. Dan graduated from the U.S. Naval Academy with a BS in control systems engineering and served in the Navy for six years upon graduation. He also earned an MBA in finance from Columbia Business School.
“The NXP Freescale combination will bring together two great companies whose best days lie ahead,” said Durn. “We become an automotive and MCU powerhouse with the scale to deliver significant earnings power. I’m honored to have this role and I’m looking forward to working with Peter in the coming months during the transition.” (Original Source)
Shares of NXP Semiconductors are down 5.46% to $88.36 in after-hours trading. NXPI has a 1-year high of $114 and a 1-year low of $70.35. The stock’s 50-day moving average is $84.70 and its 200-day moving average is $92.11.
On the ratings front, NXPI has been the subject of a number of recent research reports. In a report issued on November 18, FBR analyst Christopher Rolland reiterated a Buy rating on NXPI, with a price target of $105, which represents a potential upside of 12.3% from where the stock is currently trading. Separately, on November 12, Sterne Agee CRT’s Doug Freedman maintained a Buy rating on the stock and has a price target of $107.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Rolland and Doug Freedman have a total average return of 8.6% and 20.5% respectively. Rolland has a success rate of 65% and is ranked #273 out of 3649 analysts, while Freedman has a success rate of 71% and is ranked #25.
Overall, 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $109.70 which is 17.4% above where the stock opened today.
NXP Semiconductors NV is a semiconductor company providing High Performance Mixed Signal & Standard Product solutions. Its solutions are used for automotive, identification, wireless infrastructure, industrial, mobile, consumer & computing applications.