FengHe Fund Management Pte. Ltd. Makes New $45.35 Million Investment in SiTime Corporation $SITM

Key Points

• FengHe Fund Management bought 128,389 shares of SiTime (~$45.35M) in Q4, equal to about 0.49% of the company and roughly 2.6% of FengHe's portfolio (its 15th-largest holding).
• SiTime beat the quarter's expectations with EPS of $1.53 versus $1.20 and revenue of $113.29M (up 66.3% YoY), though the company still reports a negative net margin and remains unprofitable on the balance sheet.
• Analyst coverage is mostly favorable—seven Buys, one Hold and one Sell—with an average rating of "Moderate Buy" and an average target price of $415.63, while some firms (UBS, Needham) have raised targets above $450.

FengHe Fund Management Pte. Ltd. acquired a new position in shares of SiTime Corporation (NASDAQ:SITM - Free Report) in the fourth quarter, according to its most recent disclosure with the SEC. The firm acquired 128,389 shares of the company's stock, valued at approximately $45,346,000. SiTime accounts for about 2.6% of FengHe Fund Management Pte. Ltd.'s portfolio, making the stock its 15th biggest position. FengHe Fund Management Pte. Ltd. owned about 0.49% of SiTime as of its most recent filing with the SEC.

A number of other hedge funds also recently added to or reduced their stakes in SITM. Royal Bank of Canada lifted its position in SiTime by 12.5% during the 1st quarter. Royal Bank of Canada now owns 4,411 shares of the company's stock worth $675,000 after acquiring an additional 491 shares during the period. Advisors Asset Management Inc. lifted its position in SiTime by 33.6% during 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 during the period. AQR Capital Management LLC lifted its holdings in shares of SiTime by 310.8% in the 1st quarter. AQR Capital Management LLC now owns 10,754 shares of the company's stock valued at $1,557,000 after buying an additional 8,136 shares during the period. Intech Investment Management LLC lifted its holdings in shares of SiTime by 21.6% in the 1st quarter. Intech Investment Management LLC now owns 8,322 shares of the company's stock valued at $1,272,000 after buying an additional 1,477 shares during the period. Finally, M&T Bank Corp acquired a new stake in shares of SiTime in the 2nd quarter valued at approximately $240,000. 84.31% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SITM. UBS Group raised their price target on SiTime from $430.00 to $485.00 and gave the company a "buy" rating in a report on Thursday, February 5th. Wall Street Zen cut SiTime from a "buy" rating to a "hold" rating in a report on Saturday, April 11th. Roth Mkm reissued a "buy" rating and issued a $450.00 price target on shares of SiTime in a report on Thursday, February 5th. Weiss Ratings reissued a "sell (d-)" rating on shares of SiTime in a report on Tuesday, April 21st. Finally, Needham & Company LLC raised their price target on SiTime from $400.00 to $450.00 and gave the company a "buy" rating in a report on Thursday, February 5th. Seven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, SiTime has an average rating of "Moderate Buy" and an average target price of $415.63.

Insider Activity

In related news, Director Raman Chitkara sold 501 shares of SiTime stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $425.03, for a total transaction of $212,940.03. Following the completion of the transaction, the director directly owned 21,508 shares of the company's stock, valued at approximately $9,141,545.24. The trade was a 2.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Akira Takata sold 3,500 shares of SiTime stock in a transaction on Friday, February 6th. The stock was sold at an average price of $431.73, for a total value of $1,511,055.00. Following the transaction, the director directly owned 13,734 shares of the company's stock, valued at approximately $5,929,379.82. This represents a 20.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 26,178 shares of company stock valued at $11,282,324 in the last 90 days. Insiders own 2.30% of the company's stock.

SiTime Price Performance

SITM opened at $547.98 on Tuesday. The business has a 50 day simple moving average of $398.66 and a 200-day simple moving average of $357.19. The stock has a market capitalization of $14.47 billion, a P/E ratio of -301.09 and a beta of 2.57. SiTime Corporation has a 12 month low of $138.74 and a 12 month high of $591.13.

SiTime (NASDAQ:SITM - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.33. The firm had revenue of $113.29 million during the quarter, compared to analysts' expectations of $101.91 million. SiTime had a negative return on equity of 2.06% and a negative net margin of 13.13%.SiTime's revenue was up 66.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.48 earnings per share. Research analysts anticipate that SiTime Corporation will post 1.31 EPS for the current year.

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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