Silicon Motion Technology (NASDAQ:SIMO) Stock Moved Down to "Hold" by Wall Street Zen

Key Points

• Wall Street Zen downgraded Silicon Motion from “buy” to “hold.” Despite some recent rating cuts, the broader analyst consensus remains “Moderate Buy,” with a $331.25 average price target.
• The company reported quarterly EPS of $4.35, beating the $3.30 estimate, and revenue of $560.22 million versus expectations of $529.10 million. Revenue rose 131.5% year over year.
• SIMO shares opened at $162.76, well below the reported 50-day moving average of $241.43; the stock’s 52-week range was $79.76 to $355.00.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts also recently commented on the stock. Weiss Ratings downgraded shares of Silicon Motion Technology from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, October 16th. Needham & Company LLC upped their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Susquehanna lifted their price target on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the stock a "positive" rating in a research note on Friday, July 31st. Zacks Research downgraded Silicon Motion Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Finally, Craig Hallum reaffirmed a "buy" rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a research report on Friday, July 31st. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Silicon Motion Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $331.25.

Silicon Motion Technology Stock Performance

Shares of SIMO opened at $162.76 on Friday. The company has a market capitalization of $5.52 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 0.35 and a beta of 1.78. The company has a debt-to-equity ratio of 1.00, a quick ratio of 3.65 and a current ratio of 5.68. Silicon Motion Technology has a 1 year low of $79.76 and a 1 year high of $355.00. The company's 50 day simple moving average is $241.43 and its 200 day simple moving average is $215.16.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $1.05. Silicon Motion Technology had a net margin of 19.36% and a return on equity of 32.29%. The business had revenue of $560.22 million for the quarter, compared to analysts' expectations of $529.10 million. During the same period in the previous year, the business earned $1.00 earnings per share. The company's revenue was up 131.5% on a year-over-year basis. On average, sell-side analysts predict that Silicon Motion Technology will post 10.20 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hawk Ridge Capital Management LP grew its stake in shares of Silicon Motion Technology by 48.9% in the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer's stock worth $131,752,000 after purchasing an additional 385,568 shares in the last quarter. Lazard Asset Management LLC grew its position in Silicon Motion Technology by 3.1% in the first quarter. Lazard Asset Management LLC now owns 781,981 shares of the semiconductor producer's stock valued at $87,809,000 after purchasing an additional 23,403 shares in the last quarter. Bahl & Gaynor LLC grew its stake in shares of Silicon Motion Technology by 19.5% in the third quarter. Bahl & Gaynor LLC now owns 541,907 shares of the semiconductor producer's stock valued at $151,734,000 after acquiring an additional 88,600 shares in the last quarter. Aberdeen Group plc boosted its position in Silicon Motion Technology by 34,233.7% during the 3rd quarter. Aberdeen Group plc now owns 489,599 shares of the semiconductor producer's stock worth $137,088,000 after buying an additional 488,173 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its stake in Silicon Motion Technology by 112.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer's stock worth $47,802,000 after buying an additional 225,221 shares during the period. 78.02% of the stock is currently owned by hedge funds and other institutional investors.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company's product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.

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