Silicon Motion Technology Corporation $SIMO Stock Position Lowered by Wellington Management Group LLP

Key Points

• Wellington Management cut its Silicon Motion Technology position by 39.1% in the second quarter, selling 119,035 shares and retaining 185,251 shares worth approximately $61.75 million. Institutional investors and hedge funds collectively own 78.02% of the company.
• Silicon Motion reported strong quarterly results, with EPS of $2.43 beating estimates of $2.13 and revenue of $451 million exceeding forecasts. Revenue increased 127% year over year, while net margin reached 22.06%.
• Analysts remain bullish, with the stock carrying a consensus “Buy” rating and an average price target of $341.43; several firms recently raised their targets, including Wedbush at $400.

Wellington Management Group LLP decreased its holdings in shares of Silicon Motion Technology Corporation (NASDAQ:SIMO - Free Report) by 39.1% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 185,251 shares of the semiconductor producer's stock after selling 119,035 shares during the period. Wellington Management Group LLP owned approximately 0.55% of Silicon Motion Technology worth $61,750,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. Brown Brothers Harriman & Co. purchased a new position in Silicon Motion Technology in the 3rd quarter worth about $26,000. Cooper Investors PTY Ltd. purchased a new stake in Silicon Motion Technology during the second quarter valued at about $34,000. Arax Advisory Partners boosted its holdings in shares of Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer's stock worth $41,000 after buying an additional 307 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Silicon Motion Technology by 169.4% in the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer's stock worth $44,000 after buying an additional 366 shares during the period. Finally, Raymond James Financial Inc. purchased a new position in shares of Silicon Motion Technology in the second quarter worth approximately $75,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

Silicon Motion Technology Stock Performance

Silicon Motion Technology stock opened at $242.51 on Thursday. Silicon Motion Technology Corporation has a twelve month low of $77.91 and a twelve month high of $355.00. The firm has a market cap of $8.22 billion, a PE ratio of 28.43, a P/E/G ratio of 0.41 and a beta of 1.71. The firm's 50 day moving average price is $270.84 and its two-hundred day moving average price is $218.20.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.13 by $0.30. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The company had revenue of $451.00 million during the quarter, compared to analyst estimates of $403.41 million. During the same quarter last year, the business posted $0.69 EPS. The company's revenue for the quarter was up 127.0% on a year-over-year basis. Equities analysts anticipate that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on SIMO shares. Roth Capital restated a "buy" rating and issued a $350.00 price target on shares of Silicon Motion Technology in a research report on Thursday, July 30th. Needham & Company LLC lifted their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Weiss Ratings raised shares of Silicon Motion Technology from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, August 17th. Wedbush increased their target price on Silicon Motion Technology from $230.00 to $400.00 and gave the company an "outperform" rating in a report on Monday, June 22nd. Finally, B. Riley Financial raised their target price on Silicon Motion Technology from $312.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating and nine have issued a Buy rating to the stock. Based on data from MarketBeat, Silicon Motion Technology currently has a consensus rating of "Buy" and a consensus target price of $341.43.

Insider Transactions at Silicon Motion Technology

In other Silicon Motion Technology news, Director Han-Ping Shieh sold 1,000 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the transaction, the director owned 7,500 shares in the company, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the transaction, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.34% of the company's stock.

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.

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