Silicom (NASDAQ:SILC) Stock Breaks Above 200 Day Moving Average - Here's What Happened

Key Points

• Silicom shares moved above their 200-day moving average of $41.73, reaching $42.90 during trading before closing at $40.37. The stock’s 50-day average was higher at $47.22.
• Analyst sentiment remains mixed, with one Buy and one Sell rating, producing an overall “Hold” consensus and a $60.00 average price target. Needham upgraded the stock to Buy, while Weiss Ratings maintained a Sell rating.
• Silicom exceeded quarterly expectations, reporting an adjusted loss of $0.16 per share versus the $0.24 estimate and revenue of $23.81 million versus the $20.58 million consensus. However, insiders sold 48,041 shares worth $2.33 million over the prior 90 days.

Silicom Ltd (NASDAQ:SILC - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $41.73 and traded as high as $42.90. Silicom shares last traded at $40.37, with a volume of 201,273 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Silicom in a report on Thursday, July 30th. Needham & Company LLC raised shares of Silicom from a "hold" rating to a "buy" rating and set a $60.00 price target for the company in a research report on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $60.00.

Silicom Price Performance

The stock has a market capitalization of $232.13 million, a price-to-earnings ratio of -23.61 and a beta of 1.56. The business's fifty day moving average price is $47.22 and its 200-day moving average price is $41.73.

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

Insider Buying and Selling

In other news, CEO Liron Eizenman sold 18,072 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 9,928 shares of the company's stock, valued at $481,805.84. This represents a 64.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Yeshayhu Orbach sold 2,969 shares of the stock in a transaction that occurred on 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. Insiders have sold a total of 48,041 shares of company stock worth $2,331,789 over the last 90 days. Company insiders own 25.38% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL bought a new stake in Silicom during the second quarter worth $34,000. Renaissance Technologies LLC purchased a new stake in Silicom in the 1st quarter valued at $537,000. Finally, First Wilshire Securities Management Inc. lifted its stake in Silicom by 3.6% during the 1st quarter. First Wilshire Securities Management Inc. now owns 315,642 shares of the technology company's stock valued at $6,660,000 after acquiring an additional 10,834 shares in the last quarter. Hedge funds and other institutional investors own 52.85% of the company's stock.

Silicom Company Profile

Silicom Ltd. NASDAQ: SILC develops and supplies high-performance networking and data infrastructure solutions. Its products are designed for use in servers, network appliances and communications systems, helping customers manage, secure, accelerate and monitor data traffic across enterprise and service-provider environments.

The company's product portfolio includes network interface cards and adapters, intelligent and programmable networking solutions, bypass switches, packet-capture and traffic-processing products, network packet brokers, and specialized acceleration and synchronization technologies.

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