Silicon Motion Technology Corporation (NASDAQ:SIMO) Receives Consensus Recommendation of "Buy" from Brokerages

Key Points

• Analyst sentiment is bullish: All 10 covering firms rate Silicon Motion Technology “Buy” or “Strong Buy,” with an average 12-month price target of $341.43.
• Quarterly results exceeded expectations: The company reported $2.43 in earnings per share versus the $2.13 consensus estimate, while revenue rose 127% year over year to $451 million.
• Institutional ownership remains substantial: Institutional investors and hedge funds hold 78.02% of SIMO shares, while the stock recently traded at $272.11 within a $79.76–$355.00 one-year range.

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

Several research analysts have weighed in on SIMO shares. Susquehanna increased their price target on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a report on Friday, July 31st. Wall Street Zen downgraded shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. B. Riley Financial lifted their target price on Silicon Motion Technology from $312.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Roth Capital reaffirmed a "buy" rating and set a $350.00 price target on shares of Silicon Motion Technology in a report on Thursday, July 30th. Finally, Wedbush increased their target price on Silicon Motion Technology from $230.00 to $400.00 and gave the company an "outperform" rating in a research report on Monday, June 22nd.

Silicon Motion Technology Price Performance

Shares of SIMO stock opened at $272.11 on Monday. Silicon Motion Technology has a one year low of $79.76 and a one year high of $355.00. The stock has a market cap of $9.23 billion, a P/E ratio of 31.90, a P/E/G ratio of 0.47 and a beta of 1.71. The company has a fifty day moving average price of $256.80 and a two-hundred day moving average price of $228.64.

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

Institutional Trading of Silicon Motion Technology

A number of large investors have recently bought and sold shares of the business. IKE Capital LLC acquired a new stake in Silicon Motion Technology during the second quarter worth approximately $412,000. Tidal Investments LLC increased its position in shares of Silicon Motion Technology by 135.9% during the second quarter. Tidal Investments LLC now owns 116,620 shares of the semiconductor producer's stock worth $38,873,000 after acquiring an additional 67,178 shares in the last quarter. NewEdge Advisors LLC increased its holdings in Silicon Motion Technology by 190.6% during the 2nd quarter. NewEdge Advisors LLC now owns 2,130 shares of the semiconductor producer's stock worth $710,000 after purchasing an additional 1,397 shares in the last quarter. IFP Advisors Inc purchased a new stake in shares of Silicon Motion Technology in the second quarter valued at about $162,000. Finally, Baird Financial Group Inc. purchased a new stake in shares of Silicon Motion Technology during the second quarter valued at approximately $663,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

About Silicon Motion Technology

Silicon Motion Technology Corporation develops and supplies semiconductor solutions for NAND flash storage devices. Its products include flash memory controllers for solid-state drives (SSDs), client and enterprise storage systems, embedded storage, and other applications that use NAND flash memory.

The company provides controller technologies used in consumer electronics, personal computers, mobile devices, industrial equipment, and data-center infrastructure. Its offerings are designed to manage data storage, improve performance and reliability, and support the integration of NAND flash memory into a range of storage products.

Silicon Motion was founded in 1995 and went public on the Nasdaq Stock Market in 2005 under the symbol SIMO.

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