Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 7.2% - Here's Why

Key Points

• Silicon Motion shares fell 7.2% to about $264 in Monday trading, with volume down 88% from the average session. The stock has declined 13.1% based on the article’s trading update.
• Despite the selloff, analyst sentiment remains positive: the stock has an overall “Buy” consensus, with a $341.43 average price target versus its trading price.
• The company reported strong quarterly results, including EPS of $2.43 versus the $2.13 consensus and revenue of $451 million, up 127% year over year. Two directors recently sold shares, while institutional investors own 78.02% of the stock.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) was down 7.2% on Monday . The company traded as low as $259.00 and last traded at $264.0720. 107,259 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 892,374 shares. The stock had previously closed at $284.48.

Analyst Ratings Changes

SIMO has been the topic of several recent analyst reports. Weiss Ratings upgraded shares of Silicon Motion Technology from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, August 17th. 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. B. Riley Financial raised their target price on shares of Silicon Motion Technology from $312.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Craig Hallum reiterated a "buy" rating and issued a $325.00 price target 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 note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating and nine have assigned a Buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $341.43.

Silicon Motion Technology Trading Down 13.1%

The company has a 50-day simple moving average of $263.50 and a 200 day simple moving average of $224.59. The company has a market cap of $8.38 billion, a P/E ratio of 29.06, a P/E/G ratio of 0.49 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its quarterly 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. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. 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 posted $0.69 earnings per share. The company's revenue was up 127.0% on a year-over-year basis. On average, equities analysts forecast that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insider Activity

In other Silicon Motion Technology news, Director Kenneth Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total transaction of $610,000.00. Following the transaction, 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 sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total value of $328,000.00. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 5.34% of the company's stock.

Institutional Investors Weigh In On Silicon Motion Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brown Brothers Harriman & Co. purchased a new stake in shares of Silicon Motion Technology in the third quarter valued at approximately $26,000. Cooper Investors PTY Ltd. acquired a new stake in Silicon Motion Technology in the 2nd quarter valued at $34,000. Arax Advisory Partners increased its holdings in Silicon Motion Technology by 220.9% in the 4th quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer's stock worth $41,000 after acquiring an additional 307 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in Silicon Motion Technology by 169.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer's stock worth $44,000 after acquiring an additional 366 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in Silicon Motion Technology during the second quarter worth $75,000. Institutional investors and hedge funds own 78.02% of the company's stock.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation develops and supplies semiconductor solutions for NAND flash storage devices. Its products include flash memory controllers for solid-state drives (SSDs), client and enterprise storage systems, embedded storage, and other applications that use NAND flash memory.

The company provides controller technologies used in consumer electronics, personal computers, mobile devices, industrial equipment, and data-center infrastructure. Its offerings are designed to manage data storage, improve performance and reliability, and support the integration of NAND flash memory into a range of storage products.

Silicon Motion was founded in 1995 and went public on the Nasdaq Stock Market in 2005 under the symbol SIMO.

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