Silicon Motion Technology Corporation (NASDAQ:SIMO) Given Consensus Recommendation of "Buy" by Analysts

Key Points

• Analysts remain bullish: Silicon Motion has a consensus “Buy” rating, with nine analysts recommending buy and one strong buy. The average 12-month price target is $341.43.
• Strong quarterly performance: The company reported adjusted EPS of $2.43, beating estimates of $2.13, while revenue reached $451 million and rose 127% year over year.
• Institutional ownership is substantial: Institutional investors own 78.02% of shares, although insiders have sold 4,000 shares worth approximately $1.24 million over the past 90 days.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) has been given an average recommendation of "Buy" by the ten ratings firms that are covering the company, Marketbeat.com reports. Nine research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $341.4286.

Several equities research analysts recently issued reports on SIMO shares. Wedbush upped their price target on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a report on Monday, June 22nd. Susquehanna raised their price objective on Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a research note on Friday, July 31st. JPMorgan Chase & Co. lifted their price objective on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of Silicon Motion Technology from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, August 17th. Finally, Needham & Company LLC increased their target price on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a report on Thursday, July 30th.

Silicon Motion Technology Price Performance

SIMO opened at $263.11 on Thursday. Silicon Motion Technology has a fifty-two week low of $77.22 and a fifty-two week high of $355.00. The firm has a market capitalization of $8.92 billion, a PE ratio of 30.85, a P/E/G ratio of 0.42 and a beta of 1.71. The company's 50-day moving average is $278.70 and its 200 day moving average is $214.31.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.13 by $0.30. The business had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%.The company's quarterly revenue was up 127.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.69 EPS. As a group, analysts expect that Silicon Motion Technology will post 10.78 EPS for the current year.

Insider Activity

In related news, Director Kuan-Ming Lin sold 2,000 shares of the business's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total transaction of $610,000.00. Following the transaction, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Han-Ping Shieh sold 1,000 shares of the company's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the sale, the director directly owned 7,500 shares of the company's stock, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 4,000 shares of company stock worth $1,239,250. 5.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors have recently modified their holdings of the business. Royal Bank of Canada lifted its holdings in Silicon Motion Technology by 87.6% during the first quarter. Royal Bank of Canada now owns 69,660 shares of the semiconductor producer's stock worth $3,522,000 after acquiring an additional 32,527 shares during the period. Goldman Sachs Group Inc. grew its stake in Silicon Motion Technology by 155.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer's stock valued at $3,741,000 after purchasing an additional 44,976 shares during the period. Geode Capital Management LLC grew its stake in Silicon Motion Technology by 2.6% in the 2nd quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer's stock valued at $2,842,000 after purchasing an additional 962 shares during the period. Creative Planning bought a new position in Silicon Motion Technology in the 2nd quarter valued at $324,000. Finally, Legal & General Group Plc increased its position in shares of Silicon Motion Technology by 141.4% during the 2nd quarter. Legal & General Group Plc now owns 9,738 shares of the semiconductor producer's stock valued at $732,000 after purchasing an additional 5,704 shares during the last quarter. 78.02% of the stock is owned by institutional investors.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.

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