Silicom (NASDAQ:SILC) Stock Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Silicom shares rose above their 200-day moving average, reaching $59.25 and last trading at $56.84 versus the $40.64 long-term average.
• Analyst sentiment remains mixed: Needham upgraded the stock to “buy” with a $60 price target, while Weiss Ratings maintained a “sell” rating. Overall, analysts rate Silicom “Hold” with an average $60 target.
• The company beat quarterly estimates with a loss of $0.16 per share and revenue of $23.81 million, but remained unprofitable; insiders have also sold 48,041 shares worth approximately $2.33 million over the past 90 days.

Silicom Ltd (NASDAQ:SILC - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $40.64 and traded as high as $59.25. Silicom shares last traded at $56.84, with a volume of 160,502 shares.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Silicom in a research report on Thursday, July 30th. Needham & Company LLC upgraded Silicom from a "hold" rating to a "buy" rating and set a $60.00 price target on the stock in a report on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $60.00.

Silicom Trading Down 5.2%

The business's 50 day moving average is $46.35 and its 200 day moving average is $40.64. The stock has a market capitalization of $326.83 million, a PE ratio of -33.24 and a beta of 1.56.

Silicom (NASDAQ:SILC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The technology company reported ($0.16) earnings per share for the quarter, topping analysts' consensus estimates 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 net margin of 12.98% and a negative return on equity of 8.37%.

Insiders Place Their Bets

In related news, CFO Eran Gilad sold 7,000 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $44.45, for a total transaction of $311,150.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Yeshayhu Orbach sold 2,969 shares of the business's stock in a transaction on Monday, August 24th. The shares were 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. In the last ninety days, insiders sold 48,041 shares of company stock worth $2,331,789. Corporate insiders own 25.38% of the company's stock.

Institutional Trading of Silicom

A number of hedge funds and other institutional investors have recently bought and sold shares of SILC. Strategic Investment Solutions Inc. IL purchased a new stake in shares of Silicom during the second quarter valued at $34,000. Renaissance Technologies LLC purchased a new position in Silicom in the 1st quarter worth about $537,000. Finally, First Wilshire Securities Management Inc. boosted its position in Silicom by 3.6% in 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 buying an additional 10,834 shares during the period. Hedge funds and other institutional investors own 52.85% of the company's stock.

About Silicom

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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