SiTime Corporation (NASDAQ:SITM) Given Average Rating of "Buy" by Analysts

Key Points

• Analysts maintain a bullish view: SiTime has a consensus “Buy” rating from 11 analysts, with an average 12-month price target of $761.25. Recent targets include $900 from Needham and Goldman Sachs.
• Quarterly results exceeded expectations: SiTime reported $2.34 in earnings per share versus the $1.95 consensus estimate, while revenue rose 126.5% year over year to $157.43 million.
• Valuation and insider activity warrant attention: The stock has a $16.77 billion market capitalization and a very high price-to-earnings ratio of 1,138.49; insiders sold 66,840 shares worth approximately $48.0 million over the past quarter.

Shares of SiTime Corporation (NASDAQ:SITM - Get Free Report) have received a consensus rating of "Buy" from the eleven ratings firms that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a hold rating, eight have assigned a buy rating and two have given a strong buy rating to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $761.25.

Several research analysts have recently weighed in on SITM shares. Needham & Company LLC increased their price target on SiTime from $850.00 to $900.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. The Goldman Sachs Group restated a "buy" rating and issued a $900.00 price objective on shares of SiTime in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of SiTime from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Tuesday, August 25th. Zacks Research raised shares of SiTime from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 13th. Finally, UBS Group boosted their target price on shares of SiTime from $775.00 to $840.00 and gave the company a "buy" rating in a report on Thursday, August 6th.

SiTime Stock Performance

NASDAQ:SITM opened at $557.86 on Monday. SiTime has a 12 month low of $222.12 and a 12 month high of $901.81. The company has a current ratio of 19.44, a quick ratio of 18.50 and a debt-to-equity ratio of 1.29. The firm's 50 day moving average is $620.85 and its 200 day moving average is $558.66. The stock has a market capitalization of $16.77 billion, a PE ratio of 1,138.49 and a beta of 2.94.

SiTime (NASDAQ:SITM - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $2.34 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.39. SiTime had a return on equity of 4.99% and a net margin of 3.01%.The business had revenue of $157.43 million during the quarter, compared to analyst estimates of $146.46 million. During the same period in the prior year, the company earned $0.47 earnings per share. SiTime's revenue was up 126.5% compared to the same quarter last year. SiTime has set its Q3 2026 guidance at 3.500-3.650 EPS. Sell-side analysts expect that SiTime will post 6.33 earnings per share for the current year.

Insider Transactions at SiTime

In other SiTime news, Director Torsten Kreindl sold 1,050 shares of SiTime stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $721.67, for a total transaction of $757,753.50. Following the transaction, the director directly owned 12,481 shares of the company's stock, valued at approximately $9,007,163.27. This trade represents a 7.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Raman Chitkara sold 2,000 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $727.38, for a total value of $1,454,760.00. Following the sale, the director owned 19,898 shares of the company's stock, valued at $14,473,407.24. This represents a 9.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 66,840 shares of company stock worth $47,960,638. 1.40% of the stock is owned by insiders.

Institutional Investors Weigh In On SiTime

Large investors have recently modified their holdings of the stock. Royal Bank of Canada grew its stake in SiTime by 12.5% in the first quarter. Royal Bank of Canada now owns 4,411 shares of the company's stock worth $675,000 after purchasing an additional 491 shares during the period. Advisors Asset Management Inc. increased its stake in shares of SiTime by 33.6% in the 1st quarter. Advisors Asset Management Inc. now owns 350 shares of the company's stock worth $54,000 after acquiring an additional 88 shares in the last quarter. AQR Capital Management LLC boosted its stake in SiTime by 310.8% during the first quarter. AQR Capital Management LLC now owns 10,754 shares of the company's stock worth $1,557,000 after acquiring an additional 8,136 shares in the last quarter. Intech Investment Management LLC boosted its stake in SiTime by 21.6% during the first quarter. Intech Investment Management LLC now owns 8,322 shares of the company's stock worth $1,272,000 after acquiring an additional 1,477 shares in the last quarter. Finally, M&T Bank Corp bought a new position in shares of SiTime during the second quarter valued at approximately $240,000. Institutional investors own 84.31% of the company's stock.

About SiTime

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime's products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company's timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.

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