Silicon Motion Technology (NASDAQ:SIMO) Shares Up 4.2% - Should You Buy?

Key Points

• SIMO shares rose 4.2% to $252.06, although trading volume was 83% below the average. The stock has a market capitalization of approximately $8.69 billion and trades at a P/E ratio of 30.02.
• Analysts maintain a favorable outlook, with an average rating of “Buy” and a consensus price target of $341.43; several firms recently raised targets into the $350–$355 range.
• Silicon Motion reported strong quarterly results, including EPS of $2.43 versus the $2.13 estimate and revenue of $451 million, up 127% year over year. However, insiders sold 4,000 shares worth about $1.24 million during the last quarter.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price traded up 4.2% during mid-day trading on Wednesday . The stock traded as high as $253.99 and last traded at $252.06. Approximately 156,380 shares changed hands during trading, a decline of 83% from the average daily volume of 905,082 shares. The stock had previously closed at $241.83.

Analyst Ratings Changes

Several equities analysts have recently commented on SIMO shares. Wall Street Zen downgraded shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. JPMorgan Chase & Co. upped their price objective on Silicon Motion Technology from $145.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Susquehanna increased their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a research report on Friday, July 31st. Craig Hallum reissued a "buy" rating and issued a $325.00 target price on shares of Silicon Motion Technology in a report on Friday, July 31st. Finally, Needham & Company LLC boosted their price target on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. Based on data from MarketBeat, Silicon Motion Technology presently has an average rating of "Buy" and a consensus target price of $341.43.

Silicon Motion Technology Stock Performance

The stock's fifty day moving average is $279.58 and its 200 day moving average is $213.35. The stock has a market cap of $8.69 billion, a P/E ratio of 30.02, a P/E/G ratio of 0.42 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 EPS for the quarter, topping the consensus estimate of $2.13 by $0.30. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%.The company had revenue of $451.00 million during the quarter, compared to analyst estimates of $403.41 million. During the same quarter last year, the business posted $0.69 earnings per share. The firm's revenue was up 127.0% on a year-over-year basis. Equities research analysts predict that Silicon Motion Technology Corporation will post 10.78 EPS for the current year.

Insider Buying and Selling

In related news, Director Kuan-Ming Lin sold 2,000 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following the sale, the director owned 8,500 shares in the company, valued at approximately $2,592,500. This represents a 19.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the completion of the sale, the director owned 7,500 shares of the company's stock, valued at approximately $2,460,000. This represents a 11.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 4,000 shares of company stock valued at $1,239,250. Company insiders own 5.34% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SIMO. Assetmark Inc. increased its holdings in shares of Silicon Motion Technology by 2.3% in the first quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer's stock valued at $316,000 after purchasing an additional 63 shares during the period. Wedbush Securities Inc. lifted its holdings in shares of Silicon Motion Technology by 1.7% during the fourth quarter. Wedbush Securities Inc. now owns 4,685 shares of the semiconductor producer's stock worth $434,000 after purchasing an additional 79 shares during the period. NewEdge Wealth LLC boosted its position in Silicon Motion Technology by 3.6% in the fourth quarter. NewEdge Wealth LLC now owns 2,631 shares of the semiconductor producer's stock valued at $244,000 after buying an additional 91 shares during the last quarter. Cooper Investors PTY Ltd. purchased a new stake in Silicon Motion Technology in the second quarter valued at approximately $34,000. Finally, Ballentine Partners LLC increased its holdings in Silicon Motion Technology by 2.8% in the 4th quarter. Ballentine Partners LLC now owns 4,006 shares of the semiconductor producer's stock worth $371,000 after buying an additional 110 shares during the period. Institutional investors own 78.02% of the company's stock.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.

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