Silicon Motion Technology (NASDAQ:SIMO) Shares Down 8.1% - Time to Sell?

Key Points

• Silicon Motion Technology shares fell 8.1% to approximately $262.53, with trading volume 39% below the average session volume.
• Despite the decline, analysts remain broadly positive: nine rate the stock Buy and one rates it Hold, with an average price target of $341.43.
• The company reported strong quarterly results, including $2.43 in EPS versus $2.13 expected and revenue of $451 million, up 127% year over year; institutional investors own 78.02% of the shares.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price traded down 8.1% on Thursday. The company traded as low as $259.06 and last traded at $262.5280. 534,222 shares traded hands during trading, a decline of 39% from the average session volume of 879,778 shares. The stock had previously closed at $285.78.

Analyst Ratings Changes

A number of research analysts have commented on SIMO shares. Susquehanna lifted their price objective on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a research note on Friday, July 31st. Wedbush increased their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a research note on Monday, June 22nd. Wall Street Zen lowered Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. Zacks Research downgraded Silicon Motion Technology from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 2nd. Finally, Needham & Company LLC increased their price objective on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $341.43.

Silicon Motion Technology Trading Down 8.5%

The company has a market cap of $8.86 billion, a price-to-earnings ratio of 30.72, a PEG ratio of 0.49 and a beta of 1.69. The company's 50 day moving average price is $259.54 and its 200 day moving average price is $242.88.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor producer reported $2.43 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 firm had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. During the same quarter last year, the firm earned $0.69 earnings per share. The firm's revenue was up 127.0% compared to the same quarter last year. Sell-side analysts predict that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current year.

Institutional Trading of Silicon Motion Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Hawk Ridge Capital Management LP lifted its position in Silicon Motion Technology by 48.9% during the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer's stock worth $131,752,000 after buying an additional 385,568 shares during the period. Lazard Asset Management LLC increased its stake in shares of Silicon Motion Technology by 3.1% during the 1st quarter. Lazard Asset Management LLC now owns 781,981 shares of the semiconductor producer's stock valued at $87,809,000 after acquiring an additional 23,403 shares during the last quarter. Wolf Hill Capital Management LP acquired a new position in shares of Silicon Motion Technology during the 4th quarter valued at about $53,893,000. Summit Partners Public Asset Management LLC lifted its holdings in shares of Silicon Motion Technology by 33.7% during the 4th quarter. Summit Partners Public Asset Management LLC now owns 534,932 shares of the semiconductor producer's stock worth $49,588,000 after acquiring an additional 134,927 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Silicon Motion Technology by 112.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer's stock worth $47,802,000 after acquiring an additional 225,221 shares during the period. 78.02% of the stock is owned by hedge funds and other institutional investors.

About Silicon Motion Technology

Silicon Motion Technology Corporation is a fabless semiconductor company that designs and develops NAND flash storage controllers and related semiconductor solutions. Its products manage data storage, performance, reliability and power consumption in devices that use NAND flash memory.

The company supplies controllers for client solid-state drives (SSDs), enterprise and industrial storage applications, embedded storage products such as eMMC and UFS, and removable storage including memory cards and USB flash drives.

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