Silicon Motion Technology (NASDAQ:SIMO) Shares Up 5.9% - Should You Buy?

Key Points

• Silicon Motion shares rose 5.9% to $249.50 in mid-day trading, although volume was 86% below the stock’s average daily volume.
• Analysts remain bullish, with a consensus “Buy” rating and an average price target of $341.43; several firms recently raised their targets to between $350 and $400.
• The company reported strong quarterly results, with EPS of $2.43 and revenue of $451 million exceeding estimates, while revenue increased 127% year over year. However, two directors recently sold shares.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s share price was up 5.9% during mid-day trading on Friday . The stock traded as high as $248.53 and last traded at $249.50. 125,875 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 894,793 shares. The stock had previously closed at $235.70.

Analysts Set New Price Targets

Several research firms have recently weighed in on SIMO. Susquehanna boosted their price target on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a "positive" rating in a research note on Friday, July 31st. Needham & Company LLC upped their target price 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. Wedbush raised their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a report on Monday, June 22nd. Weiss Ratings upgraded Silicon Motion Technology from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, August 17th. Finally, Wall Street Zen downgraded shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $341.43.

Silicon Motion Technology Stock Up 7.9%

The company has a market cap of $8.63 billion, a price-to-earnings ratio of 29.90, a price-to-earnings-growth ratio of 0.42 and a beta of 1.71. The company's 50-day moving average is $269.04 and its 200 day moving average is $218.90.

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, topping analysts' consensus estimates of $2.13 by $0.30. The firm had revenue of $451.00 million for the quarter, compared to the consensus estimate of $403.41 million. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%.The firm's revenue was up 127.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.69 earnings per share. Analysts predict that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insider Activity at Silicon Motion Technology

In other Silicon Motion Technology news, Director Han-Ping Shieh sold 1,000 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the sale, the director directly owned 7,500 shares in the company, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Kenneth Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the sale, the director owned 8,500 shares of the company's stock, valued at $2,592,500. This trade represents a 19.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 5.34% of the company's stock.

Institutional Investors Weigh In On Silicon Motion Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SIMO. Corient Private Wealth LP raised its holdings in shares of Silicon Motion Technology by 35.8% during the second quarter. Corient Private Wealth LP now owns 3,559 shares of the semiconductor producer's stock worth $1,186,000 after acquiring an additional 938 shares in the last quarter. XML Financial LLC bought a new stake in Silicon Motion Technology in the 2nd quarter valued at $408,000. Greenleaf Trust bought a new position in shares of Silicon Motion Technology during the 2nd quarter worth about $317,000. Navellier & Associates Inc. bought a new stake in shares of Silicon Motion Technology in the second quarter valued at about $9,340,000. Finally, Archer Investment Corp acquired a new stake in Silicon Motion Technology during the second quarter worth about $395,000. 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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