Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up - What's Next?

Key Points

• Silicon Motion Technology shares jumped 2.6%, opening at $214.25 versus a prior close of $204.17. The company has a $7.11 billion market capitalization, and its 200-day moving average is $211.95.
• Analyst sentiment remains positive, with ten Buy ratings and one Hold rating producing a consensus “Moderate Buy” and an average price target of $328.50. Several firms recently raised their targets to approximately $350–$355.
• The company reported strong quarterly results, with EPS of $2.43 and revenue of $451 million, surpassing estimates and representing 127% year-over-year revenue growth. Silicon Motion also raised its quarterly dividend to $0.575, equivalent to a 1.1% annual yield.

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $204.17, but opened at $214.25. Silicon Motion Technology shares last traded at $212.1550, with a volume of 157,389 shares.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Susquehanna lifted their price target on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a report on Friday, July 31st. Needham & Company LLC increased their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Roth Capital restated a "buy" rating and set a $350.00 price objective on shares of Silicon Motion Technology in a research report on Thursday, July 30th. Wall Street Zen cut Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. Finally, Weiss Ratings downgraded Silicon Motion Technology from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 16th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $328.50.

Silicon Motion Technology Stock Up 2.6%

The company has a market capitalization of $7.11 billion, a PE ratio of 24.57 and a beta of 1.69. The firm's 50 day simple moving average is $250.60 and its 200 day simple moving average is $211.95.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, beating the consensus estimate of $2.13 by $0.30. The firm had revenue of $451.00 million during the quarter, compared to analysts' expectations of $403.41 million. During the same period in the prior year, the company posted $0.69 EPS. The company's revenue was up 127.0% compared to the same quarter last year. As a group, sell-side analysts predict that Silicon Motion Technology Corporation will post 10.60 EPS for the current fiscal year.

Silicon Motion Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be paid a $0.5750 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This is an increase from Silicon Motion Technology's previous quarterly dividend of $0.50. This represents a $2.30 annualized dividend and a yield of 1.1%. Silicon Motion Technology's payout ratio is 26.85%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SIMO. Kornitzer Capital Management Inc. KS purchased a new stake in Silicon Motion Technology during the first quarter valued at approximately $4,827,000. Schwartz Investment Counsel Inc. boosted its stake in Silicon Motion Technology by 36.4% in the first quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer's stock valued at $33,687,000 after acquiring an additional 80,000 shares in the last quarter. AIGH Capital Management LLC acquired a new stake in Silicon Motion Technology in the first quarter valued at approximately $22,458,000. Calamos Advisors LLC purchased a new position in Silicon Motion Technology in the first quarter worth $2,686,000. Finally, Elevation Point Wealth Partners LLC purchased a new position in Silicon Motion Technology in the first quarter worth $496,000. Hedge funds and other institutional investors own 78.02% of the company's stock.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company's product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.

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