SiTime (NASDAQ:SITM) Price Target Cut to $650.00 by Analysts at UBS Group

Key Points

• UBS cut its SiTime price target to $650 from $750 but kept a Buy rating; the revised target implies 83.1% upside from the prior close.
• Analyst sentiment remains broadly positive, with a Moderate Buy consensus and an average price target of $687. Needham also lowered its target, to $600 from $900, while retaining Buy.
• SiTime beat quarterly estimates, reporting EPS of $4.01 versus $3.62 expected and revenue of $298.67 million, up 257.4% year over year; shares were down 12% in Thursday trading.

SiTime (NASDAQ:SITM - Get Free Report) had its price objective cut by research analysts at UBS Group from $750.00 to $650.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's target price would suggest a potential upside of 83.10% from the stock's previous close.

A number of other equities analysts also recently issued reports on SITM. Weiss Ratings downgraded shares of SiTime from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, October 23rd. Zacks Research cut SiTime from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. The Goldman Sachs Group reiterated a "buy" rating and set a $900.00 target price on shares of SiTime in a report on Thursday, August 6th. Needham & Company LLC decreased their target price on SiTime from $900.00 to $600.00 and set a "buy" rating for the company in a research report on Thursday. Finally, Seaport Research Partners upgraded SiTime from a "neutral" rating to a "buy" rating and set a $425.00 target price for the company in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $687.00.

SiTime Stock Down 12.0%

Shares of NASDAQ SITM opened at $355.00 on Thursday. The company has a current ratio of 19.44, a quick ratio of 18.50 and a debt-to-equity ratio of 1.29. SiTime has a 12 month low of $243.68 and a 12 month high of $901.81. The firm has a market capitalization of $10.68 billion, a PE ratio of 377.66 and a beta of 2.88. The firm has a fifty day simple moving average of $565.87 and a two-hundred day simple moving average of $546.00.

SiTime (NASDAQ:SITM - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported $4.01 EPS for the quarter, topping the consensus estimate of $3.62 by $0.39. The firm had revenue of $298.67 million during the quarter, compared to analysts' expectations of $292.65 million. SiTime had a net margin of 3.87% and a return on equity of 13.92%. The company's quarterly revenue was up 257.4% compared to the same quarter last year. During the same period last year, the company posted $0.87 EPS. Equities analysts expect that SiTime will post 6.37 earnings per share for the current year.

Insider Buying and Selling at SiTime

In related news, Director Katherine Schuelke sold 500 shares of SiTime stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $698.05, for a total transaction of $349,025.00. Following the completion of the transaction, the director directly owned 12,010 shares of the company's stock, valued at $8,383,580.50. This trade represents a 4.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Fariborz Assaderaghi sold 1,374 shares of SiTime stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $701.05, for a total transaction of $963,242.70. Following the transaction, the insider directly owned 66,861 shares of the company's stock, valued at approximately $46,872,904.05. This trade represents a 2.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,874 shares of company stock valued at $9,298,908 in the last quarter. 1.40% of the stock is owned by insiders.

Hedge Funds Weigh In On SiTime

Several large investors have recently made changes to their positions in the business. Maryland State Retirement & Pension System boosted its holdings in SiTime by 12.7% in the third quarter. Maryland State Retirement & Pension System now owns 1,360 shares of the company's stock worth $887,000 after purchasing an additional 153 shares during the last quarter. Ritholtz Wealth Management increased its position in SiTime by 208.2% during the third quarter. Ritholtz Wealth Management now owns 1,202 shares of the company's stock valued at $784,000 after acquiring an additional 812 shares during the last quarter. Jacobi Capital Management LLC purchased a new stake in SiTime during the third quarter valued at $67,000. Lido Advisors LLC lifted its holdings in SiTime by 43.0% in the third quarter. Lido Advisors LLC now owns 862 shares of the company's stock valued at $562,000 after acquiring an additional 259 shares during the period. Finally, AlphaCore Capital LLC lifted its holdings in SiTime by 87.1% in the third quarter. AlphaCore Capital LLC now owns 1,345 shares of the company's stock valued at $877,000 after acquiring an additional 626 shares during the period. 84.31% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting SiTime

Here are the key news stories impacting SiTime this week:

• Positive Sentiment: Q3 results beat estimates. SiTime reported EPS of $4.01 versus the $3.62 consensus and revenue of $298.67 million, up 257.4% year over year. Results also included a 70.7% gross margin; growth was supported in part by the Renesas timing acquisition. Read More.
• Positive Sentiment: Management pointed to expanding demand. The earnings-call coverage cited AI infrastructure demand and opportunities in optical networking, alongside the integration of TPD, as drivers supporting the outlook. Read More.
• Positive Sentiment: Seaport Global upgraded SITM to Buy from Neutral and set a $425 price target. Rosenblatt Securities also reportedly raised its target. Read More.
• Neutral Sentiment: Analyst views are not uniformly more bullish: Needham cut its price target to $600 from $900 but maintained a Buy rating. This tempers the impact of the upgrades, though the firm remains positive on the shares. Read More.
• Negative Sentiment: Supply availability could limit growth. Earnings-call coverage says wafer constraints may persist through 2027, potentially restricting SiTime’s ability to meet demand. Read More.

About SiTime

SiTime Corporation NASDAQ: SITM develops and supplies precision timing solutions for electronic systems. Its products are designed to generate, distribute and maintain accurate timing signals, which help connected devices and infrastructure operate reliably and efficiently.

The company's portfolio includes silicon MEMS-based resonators and oscillators, clock generators, clock synchronizers, jitter attenuators and other timing components. These products are used in applications such as data centers, telecommunications and networking equipment, automotive systems, industrial machinery, aerospace and defense electronics, and consumer devices.

SiTime's technology is intended to address demanding requirements for frequency stability, signal integrity, power efficiency and resilience in challenging operating environments.

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