Short Interest in Silicom Ltd (NASDAQ:SILC) Decreases By 39.5%

Key Points

• Short interest in Silicom fell 39.5% to 71,137 shares as of August 14, representing 1.7% of shares outstanding and a short-interest ratio of 0.4 days.
• Analyst sentiment remains mixed: Needham upgraded the stock to “Buy” with a $60 price target, while Weiss Ratings maintained a “Sell” rating; the overall consensus is “Hold.”
• Silicom beat quarterly expectations, reporting an adjusted loss of $0.16 per share versus the expected $0.24 loss and revenue of $23.81 million versus the $20.58 million estimate. However, insiders have sold 48,041 shares over the past 90 days, and the company continues to report negative profitability metrics.

Silicom Ltd (NASDAQ:SILC - Get Free Report) was the recipient of a significant decrease in short interest in August. As of August 14th, there was short interest totaling 71,137 shares, a decrease of 39.5% from the July 30th total of 117,492 shares. Currently, 1.7% of the shares of the stock are short sold. Based on an average daily trading volume, of 192,321 shares, the short-interest ratio is currently 0.4 days.

Wall Street Analysts Forecast Growth

SILC has been the subject of a number of research analyst reports. Needham & Company LLC upgraded shares of Silicom from a "hold" rating to a "buy" rating and set a $60.00 price objective for the company in a research report on Thursday, July 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Silicom in a research report on Thursday, July 30th. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $60.00.

Silicom Stock Performance

Shares of SILC traded down $0.96 during mid-day trading on Monday, reaching $41.24. 11,200 shares of the company were exchanged, compared to its average volume of 124,888. The stock has a market capitalization of $237.11 million, a PE ratio of -24.11 and a beta of 1.56. Silicom has a 52 week low of $13.34 and a 52 week high of $52.95. The business has a 50 day simple moving average of $42.90 and a two-hundred day simple moving average of $34.84.

Silicom (NASDAQ:SILC - Get Free Report) last announced its earnings results on Wednesday, July 29th. The technology company reported ($0.16) EPS for the quarter, beating the consensus estimate of ($0.24) by $0.08. The company had revenue of $23.81 million for the quarter, compared to analyst estimates of $20.58 million. Silicom had a negative return on equity of 8.37% and a negative net margin of 12.98%.

Insider Activity

In other Silicom news, CFO Eran Gilad sold 7,000 shares of Silicom stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $44.45, for a total value of $311,150.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Yeshayhu Orbach sold 2,969 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $45.00, for a total value of $133,605.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 48,041 shares of company stock valued at $2,331,789. 25.38% of the stock is owned by insiders.

Institutional Trading of Silicom

Several hedge funds have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL bought a new position in Silicom during the second quarter worth $34,000. Bank of America Corp DE acquired a new position in shares of Silicom during the fourth quarter valued at about $29,000. Barclays PLC raised its holdings in shares of Silicom by 33.8% during the fourth quarter. Barclays PLC now owns 3,670 shares of the technology company's stock valued at $54,000 after purchasing an additional 927 shares during the period. Goldman Sachs Group Inc. bought a new position in shares of Silicom during the 1st quarter worth about $151,000. Finally, Susquehanna International Group LLP acquired a new stake in shares of Silicom in the 3rd quarter valued at about $277,000. Institutional investors own 52.85% of the company's stock.

Silicom Company Profile

Silicom Ltd. is an Israel‐based provider of advanced networking infrastructure products designed to enhance data throughput, security, and functionality in enterprise, cloud, telecommunications, and edge‐computing environments. The company develops and manufactures a range of network interface cards (NICs), specialized adapters, and turnkey network appliances that support high‐performance packet processing, encryption, compression, and traffic optimization. Silicom's solutions are engineered to offload complex network functions from central processing units, enabling customers to achieve greater efficiency, reliability, and scalability in their data centers.

Founded in 1987 and headquartered in Lod, Israel, Silicom has grown from a niche hardware developer into a global supplier of connectivity and networking solutions.

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