Silicon Motion Technology Corporation (NASDAQ:SIMO) Stock Has Average Price Target of $328.75 According to Analysts

Key Points

• Analyst sentiment is broadly positive: Ten of 11 analysts rate Silicon Motion a buy, with one hold; the average 12-month price target is $328.75.
• Quarterly results beat expectations: The company reported EPS of $4.35 versus a $3.30 consensus estimate and revenue of $560.22 million, up 131.5% year over year.
• The dividend was increased: Silicon Motion raised its quarterly payout from $0.50 to $0.575 per share, equivalent to $2.30 annually and a 1.3% yield.

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eleven ratings firms that are presently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $328.75.

A number of analysts recently issued reports on the company. Wall Street Zen downgraded Silicon Motion Technology from a "buy" rating to a "hold" rating in a research report on Saturday. Craig Hallum reaffirmed a "buy" rating and issued a $325.00 target price on shares of Silicon Motion Technology in a research report on Friday, July 31st. Roth Capital reaffirmed a "buy" rating and set a $350.00 target price on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Needham & Company LLC lifted their price target on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, China Renaissance initiated coverage on shares of Silicon Motion Technology in a research note on Wednesday, October 28th. They issued a "buy" rating and a $300.00 price target on the stock.

Silicon Motion Technology Stock Up 5.7%

Shares of NASDAQ SIMO opened at $172.01 on Tuesday. Silicon Motion Technology has a 12-month low of $79.76 and a 12-month high of $355.00. The stock has a market cap of $5.83 billion, a PE ratio of 18.54, a P/E/G ratio of 0.33 and a beta of 1.78. The company has a current ratio of 5.68, a quick ratio of 3.65 and a debt-to-equity ratio of 1.00. The company has a 50-day moving average of $239.96 and a 200 day moving average of $215.44.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $529.10 million. During the same quarter last year, the firm earned $1.00 EPS. The business's revenue was up 131.5% compared to the same quarter last year. As a group, sell-side analysts predict that Silicon Motion Technology will post 10.20 EPS for the current fiscal year.

Silicon Motion Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be given a dividend of $0.5750 per share. This represents a $2.30 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, November 5th. This is an increase from Silicon Motion Technology's previous quarterly dividend of $0.50. Silicon Motion Technology's dividend payout ratio is 21.44%.

Institutional Trading of Silicon Motion Technology

Institutional investors have recently added to or reduced their stakes in the stock. Schwartz Investment Counsel Inc. grew its holdings in shares of Silicon Motion Technology by 36.4% in the first quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer's stock valued at $33,687,000 after purchasing an additional 80,000 shares in the last quarter. Calamos Advisors LLC acquired a new stake in Silicon Motion Technology during the 1st quarter worth approximately $2,686,000. Bank of America Corp DE lifted its holdings in Silicon Motion Technology by 33.2% during the 1st quarter. Bank of America Corp DE now owns 244,387 shares of the semiconductor producer's stock worth $27,442,000 after buying an additional 60,970 shares in the last quarter. Tidal Investments LLC boosted its position in Silicon Motion Technology by 135.9% in the 2nd quarter. Tidal Investments LLC now owns 116,620 shares of the semiconductor producer's stock valued at $38,873,000 after buying an additional 67,178 shares during the period. Finally, Sei Investments Co. boosted its position in Silicon Motion Technology by 14.3% in the 1st quarter. Sei Investments Co. now owns 109,073 shares of the semiconductor producer's stock valued at $12,248,000 after buying an additional 13,677 shares during the period. Institutional investors and hedge funds own 78.02% of the company's stock.

About Silicon Motion Technology

Silicon Motion Technology Corporation is a fabless semiconductor company that designs and markets NAND flash controllers and related storage solutions. Its products help manage data storage and retrieval in devices that use NAND flash memory.

The company's offerings include controllers for solid-state drives (SSDs), embedded storage such as eMMC and UFS, and removable storage products including memory cards and USB flash drives. Silicon Motion also develops firmware and other technologies for storage applications.

Founded in 1995, Silicon Motion serves customers around the world, including storage-device manufacturers, module makers and electronics companies.

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