Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 10.6% - Time to Sell?

Key Points

• Silicon Motion shares dropped 10.6% to roughly $198.71, with trading volume 71% below the average session volume.
• Despite the selloff, analysts remain broadly positive: nine rate the stock a Buy and one a Hold, with a consensus price target of $341.43.
• The company reported strong quarterly results, including $2.43 in EPS and $451 million in revenue, while revenue grew 127% year over year; it also raised its quarterly dividend to $0.575.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) shares fell 10.6% on Thursday. The stock traded as low as $200.25 and last traded at $198.7090. Approximately 247,947 shares were traded during trading, a decline of 71% from the average session volume of 869,864 shares. The stock had previously closed at $222.30.

Wall Street Analysts Forecast Growth

SIMO has been the topic of a number of analyst reports. Craig Hallum reiterated a "buy" rating and set a $325.00 price objective on shares of Silicon Motion Technology in a research note on Friday, July 31st. Needham & Company LLC upped their price target on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Wall Street Zen lowered shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 15th. Roth Capital reissued a "buy" rating and issued a $350.00 price objective on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Finally, Susquehanna boosted 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 report on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $341.43.

Silicon Motion Technology Stock Down 15.4%

The firm has a 50 day moving average of $256.16 and a two-hundred day moving average of $251.19. The firm has a market capitalization of $6.37 billion, a price-to-earnings ratio of 22.04, a price-to-earnings-growth ratio of 0.38 and a beta of 1.69.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its 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 firm had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. During the same quarter in the previous year, the firm earned $0.69 earnings per share. The business's quarterly revenue was up 127.0% on a year-over-year basis. Sell-side analysts forecast that Silicon Motion Technology Corporation will post 10.60 EPS for the current fiscal year.

Silicon Motion Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be paid a $0.5750 dividend. This represents a $2.30 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, November 5th. This is a positive change from Silicon Motion Technology's previous quarterly dividend of $0.50. Silicon Motion Technology's payout ratio is currently 26.96%.

Institutional Trading of Silicon Motion Technology

Hedge funds have recently added to or reduced their stakes in the stock. T3 Companies LLC bought a new stake in shares of Silicon Motion Technology during the third quarter worth $276,000. Reyes Financial Architecture Inc. bought a new position in shares of Silicon Motion Technology in the 3rd quarter valued at $58,000. Vest Financial LLC boosted its holdings in shares of Silicon Motion Technology by 39.8% during the 3rd quarter. Vest Financial LLC now owns 2,598 shares of the semiconductor producer's stock valued at $727,000 after acquiring an additional 740 shares in the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Silicon Motion Technology by 2.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 307,570 shares of the semiconductor producer's stock valued at $86,120,000 after acquiring an additional 7,871 shares in the last quarter. Finally, Diversify Advisory Services LLC boosted its holdings in shares of Silicon Motion Technology by 3.4% during the 3rd quarter. Diversify Advisory Services LLC now owns 21,805 shares of the semiconductor producer's stock valued at $6,105,000 after acquiring an additional 726 shares in the last quarter. Institutional investors and hedge funds 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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