Silicon Motion Technology (NASDAQ:SIMO) Stock Breaks Above Two Hundred Day Moving Average After Earnings Miss

Key Points

• Silicon Motion shares rose 7.6% and climbed above their 200-day moving average of $212.49, reaching as high as $222.29 after quarterly revenue exceeded expectations.
• The company reported $560.22 million in revenue, above the $529.10 million consensus estimate, but earnings of $1.91 per share fell well short of the $3.30 forecast.
• Silicon Motion increased its quarterly dividend from $0.50 to $0.575 per share. Analysts maintain a “Moderate Buy” consensus, with 10 Buy ratings, one Hold rating, and an average price target of $328.50.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Wednesday following a stronger than expected earnings report. The stock has a two hundred day moving average of $212.49 and traded as high as $222.29. Silicon Motion Technology shares last traded at $219.61, with a volume of 1,495,604 shares traded.

The semiconductor producer reported $1.91 earnings per share for the quarter, missing analysts' consensus estimates of $3.30 by ($1.39). Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%. The business had revenue of $560.22 million for the quarter, compared to the consensus estimate of $529.10 million.

Silicon Motion Technology Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be given a $0.5750 dividend. This represents a $2.30 dividend on an annualized basis and a yield of 1.0%. This is an increase from Silicon Motion Technology's previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Thursday, November 5th. Silicon Motion Technology's payout ratio is 26.85%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on SIMO. B. Riley Financial lowered their target price on shares of Silicon Motion Technology from $350.00 to $288.00 and set a "buy" rating on the stock in a report on Friday, October 23rd. Wall Street Zen lowered shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 15th. Weiss Ratings cut shares of Silicon Motion Technology from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 16th. Zacks Research downgraded shares of Silicon Motion Technology from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 2nd. Finally, Needham & Company LLC lifted their price target on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $328.50.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors and hedge funds have recently modified their holdings of SIMO. Pinnacle Wealth Planning Services Inc. raised its position in Silicon Motion Technology by 33.5% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 658 shares of the semiconductor producer's stock worth $184,000 after purchasing an additional 165 shares during the last quarter. Schwartz Investment Counsel Inc. boosted its stake in shares of Silicon Motion Technology by 48.6% in the 3rd quarter. Schwartz Investment Counsel Inc. now owns 401,300 shares of the semiconductor producer's stock valued at $112,364,000 after purchasing an additional 131,300 shares during the last quarter. MBL Wealth LLC grew its holdings in Silicon Motion Technology by 128.3% during the 3rd quarter. MBL Wealth LLC now owns 4,680 shares of the semiconductor producer's stock worth $1,310,000 after acquiring an additional 2,630 shares during the period. T3 Companies LLC acquired a new stake in Silicon Motion Technology during the 3rd quarter worth about $276,000. Finally, Reyes Financial Architecture Inc. bought a new stake in Silicon Motion Technology in the third quarter worth approximately $58,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

Silicon Motion Technology Stock Up 7.6%

The company has a 50 day simple moving average of $249.96 and a 200-day simple moving average of $212.49. The stock has a market capitalization of $7.45 billion, a price-to-earnings ratio of 25.75, a price-to-earnings-growth ratio of 0.33 and a beta of 1.69.

About Silicon Motion Technology

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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