Invesco Ltd. Purchases 636,869 Shares of Silicon Motion Technology Corporation $SIMO

Key Points

• Invesco Ltd. increased its stake in Silicon Motion Technology by 61.3%, owning approximately 4.93% of the company, which is valued at about $84.7 million.
• Several hedge funds, including National Bank of Canada FI, have significantly increased their holdings, showcasing growing institutional interest in the semiconductor producer.
• Wall Street analysts have a positive outlook, with multiple firms issuing "buy" ratings and a target price increase to as high as $100, indicating strong potential for growth in the company's stock.

Invesco Ltd. boosted its holdings in Silicon Motion Technology Corporation (NASDAQ:SIMO - Free Report) by 61.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,675,648 shares of the semiconductor producer's stock after acquiring an additional 636,869 shares during the quarter. Invesco Ltd. owned 4.93% of Silicon Motion Technology worth $84,721,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Reinhart Partners LLC. lifted its position in Silicon Motion Technology by 20.1% in the 1st quarter. Reinhart Partners LLC. now owns 1,364,291 shares of the semiconductor producer's stock valued at $68,979,000 after acquiring an additional 228,553 shares in the last quarter. Lord Abbett & CO. LLC lifted its position in Silicon Motion Technology by 20.0% in the 4th quarter. Lord Abbett & CO. LLC now owns 1,324,930 shares of the semiconductor producer's stock valued at $71,612,000 after acquiring an additional 221,017 shares in the last quarter. Wellington Management Group LLP lifted its position in Silicon Motion Technology by 40.1% in the 4th quarter. Wellington Management Group LLP now owns 797,192 shares of the semiconductor producer's stock valued at $43,088,000 after acquiring an additional 228,333 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in Silicon Motion Technology by 33.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 763,419 shares of the semiconductor producer's stock valued at $41,263,000 after acquiring an additional 192,603 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA raised its stake in Silicon Motion Technology by 8.8% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 757,506 shares of the semiconductor producer's stock valued at $38,300,000 after buying an additional 61,213 shares during the last quarter. 78.02% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on SIMO shares. Bank of America upgraded shares of Silicon Motion Technology from a "neutral" rating to a "buy" rating and set a $90.00 target price for the company in a research note on Wednesday, June 18th. Roth Capital boosted their target price on shares of Silicon Motion Technology from $70.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, June 17th. Needham & Company LLC boosted their target price on shares of Silicon Motion Technology from $65.00 to $90.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Susquehanna boosted their target price on shares of Silicon Motion Technology from $90.00 to $95.00 and gave the company a "positive" rating in a research note on Friday, August 1st. Finally, Wedbush reiterated an "outperform" rating and set a $90.00 target price on shares of Silicon Motion Technology in a research note on Wednesday, April 30th. Ten investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and an average target price of $87.78.

Silicon Motion Technology Price Performance

Shares of NASDAQ:SIMO traded up $0.06 during midday trading on Thursday, hitting $74.20. The company had a trading volume of 153,006 shares, compared to its average volume of 352,035. The company has a market cap of $2.52 billion, a price-to-earnings ratio of 31.31, a PEG ratio of 3.70 and a beta of 0.92. Silicon Motion Technology Corporation has a 12-month low of $37.21 and a 12-month high of $85.11. The company has a fifty day moving average of $73.76 and a two-hundred day moving average of $60.67.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The semiconductor producer reported $0.69 EPS for the quarter, topping the consensus estimate of $0.54 by $0.15. The firm had revenue of $198.68 million during the quarter, compared to analyst estimates of $180.40 million. Silicon Motion Technology had a return on equity of 10.14% and a net margin of 10.36%.Silicon Motion Technology's revenue was down 5.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.96 EPS. Silicon Motion Technology has set its Q3 2025 guidance at EPS. Research analysts expect that Silicon Motion Technology Corporation will post 3.08 earnings per share for the current fiscal year.

Silicon Motion Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $2.00 annualized dividend and a yield of 2.7%. Silicon Motion Technology's dividend payout ratio is currently 83.97%.

About Silicon Motion Technology

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.