Invesco Ltd. Boosts Holdings in Silicon Motion Technology Corporation (NASDAQ: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. grew its position in shares of Silicon Motion Technology Corporation (NASDAQ:SIMO - Free Report) by 61.3% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,675,648 shares of the semiconductor producer's stock after purchasing an additional 636,869 shares during the period. Invesco Ltd. owned approximately 4.93% of Silicon Motion Technology worth $84,721,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the company. Covestor Ltd raised its stake in shares of Silicon Motion Technology by 161.4% during the first quarter. Covestor Ltd now owns 3,429 shares of the semiconductor producer's stock valued at $173,000 after purchasing an additional 2,117 shares during the period. National Bank of Canada FI grew its position in shares of Silicon Motion Technology by 10,053.3% during the first quarter. National Bank of Canada FI now owns 76,150 shares of the semiconductor producer's stock worth $3,850,000 after buying an additional 75,400 shares in the last quarter. Neumeier Poma Investment Counsel LLC grew its position in shares of Silicon Motion Technology by 94.3% during the first quarter. Neumeier Poma Investment Counsel LLC now owns 353,015 shares of the semiconductor producer's stock worth $17,848,000 after buying an additional 171,350 shares in the last quarter. Alpine Associates Management Inc. grew its position in shares of Silicon Motion Technology by 1.1% during the first quarter. Alpine Associates Management Inc. now owns 334,305 shares of the semiconductor producer's stock worth $16,902,000 after buying an additional 3,600 shares in the last quarter. Finally, Natixis Advisors LLC acquired a new stake in shares of Silicon Motion Technology during the first quarter worth approximately $561,000. Hedge funds and other institutional investors own 78.02% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SIMO. Wedbush reissued an "outperform" rating and set a $90.00 price target on shares of Silicon Motion Technology in a research report on Wednesday, April 30th. Roth Capital raised their price target on shares of Silicon Motion Technology from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 17th. Needham & Company LLC raised their price target on shares of Silicon Motion Technology from $65.00 to $90.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. B. Riley reissued a "buy" rating and set a $90.00 price target (up previously from $75.00) on shares of Silicon Motion Technology in a research report on Thursday, June 5th. Finally, Craig Hallum raised their price target on shares of Silicon Motion Technology from $70.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. One analyst has rated the stock with a hold rating and ten have issued a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $87.78.

Silicon Motion Technology Price Performance

Silicon Motion Technology stock opened at $73.67 on Friday. Silicon Motion Technology Corporation has a 12 month low of $37.21 and a 12 month high of $85.11. The company has a market cap of $2.50 billion, a PE ratio of 31.08, a P/E/G ratio of 3.77 and a beta of 0.92. The company has a fifty day moving average price of $73.19 and a two-hundred day moving average price of $60.08.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The semiconductor producer reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.15. Silicon Motion Technology had a net margin of 10.36% and a return on equity of 10.14%. The company had revenue of $198.68 million during the quarter, compared to the consensus estimate of $180.40 million. During the same quarter in the previous year, the company posted $0.96 earnings per share. The company's revenue for the quarter was down 5.7% compared to the same quarter last year. Equities research analysts anticipate that Silicon Motion Technology Corporation will post 3.08 earnings per share for the current year.

Silicon Motion Technology Dividend Announcement

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

Silicon Motion Technology Company Profile

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.

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