Silicom (NASDAQ:SILC) Share Price Crosses Below 200-Day Moving Average - Time to Sell?

Key Points

• Silicom shares fell below their 200-day moving average, trading as low as $35.00 versus the $35.64 average, with the latest price at $35.31.
• Analyst sentiment is mixed: Needham upgraded the stock to “Buy” with a $60 price target, while Weiss reaffirmed a “Sell” rating. The consensus rating remains “Hold,” with a $60 target.
• Silicom exceeded quarterly expectations with adjusted earnings of $0.04 per share and $26.72 million in revenue, but the company remains unprofitable; insiders also sold approximately $2.33 million of shares over the past three months.

Silicom Ltd (NASDAQ:SILC - Get Free Report)'s share price crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $35.64 and traded as low as $35.00. Silicom shares last traded at $35.31, with a volume of 409,407 shares changing hands.

Analyst Ratings Changes

A number of analysts have recently issued reports on SILC shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Silicom in a research report on Wednesday. Needham & Company LLC raised Silicom from a "hold" rating to a "buy" rating and set a $60.00 price target for the company in a report on Thursday, July 2nd. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Silicom currently has an average rating of "Hold" and a consensus price target of $60.00.

Silicom Price Performance

The stock has a market capitalization of $203.03 million, a price-to-earnings ratio of -20.65 and a beta of 1.56. The firm's fifty day moving average is $46.31 and its 200-day moving average is $35.64.

Silicom (NASDAQ:SILC - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The technology company reported $0.04 earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.08. The company had revenue of $26.72 million during the quarter, compared to analyst estimates of $25.45 million. Silicom had a negative net margin of 12.98% and a negative return on equity of 8.37%.

Insider Activity at Silicom

In related news, CEO Liron Eizenman sold 18,072 shares of Silicom stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $48.53, for a total value of $877,034.16. Following the completion of the transaction, the chief executive officer directly owned 9,928 shares in the company, valued at approximately $481,805.84. This trade represents a 64.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Avinoam Eizenman sold 20,000 shares of Silicom stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $50.50, for a total value of $1,010,000.00. Following the completion of the transaction, the director owned 168,736 shares of the company's stock, valued at $8,521,168. This trade represents a 10.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 48,041 shares of company stock worth $2,331,789. 25.38% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Silicom

A number of institutional investors have recently made changes to their positions in the company. Renaissance Technologies LLC bought a new stake in Silicom during the first quarter valued at $537,000. First Wilshire Securities Management Inc. lifted its position in shares of Silicom by 3.6% in the 1st quarter. First Wilshire Securities Management Inc. now owns 315,642 shares of the technology company's stock worth $6,660,000 after buying an additional 10,834 shares during the last quarter. Hidden Cove Wealth Management LLC lifted its position in shares of Silicom by 22.4% in the 3rd quarter. Hidden Cove Wealth Management LLC now owns 11,033 shares of the technology company's stock worth $577,000 after buying an additional 2,017 shares during the last quarter. Finally, Strategic Investment Solutions Inc. IL bought a new position in shares of Silicom in the 2nd quarter worth about $34,000. 52.85% of the stock is currently owned by institutional investors.

Silicom Company Profile

Silicom Ltd. is an Israel-based technology company that designs and manufactures high-performance networking and data infrastructure solutions. Its products are used to improve network connectivity, traffic management, security, and processing in servers, appliances, and communications systems.

The company's product portfolio includes server and network interface adapters, bypass solutions, network appliances, packet-processing platforms, and other specialized connectivity products. Silicom also develops solutions for cloud computing, edge computing, cybersecurity, telecommunications, and service-provider applications, often working with original equipment manufacturers and system integrators.

Founded in 1987 and headquartered in Kfar Sava, Israel, Silicom serves customers in international markets through relationships with technology vendors, communications companies, and enterprise infrastructure providers.

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