Silicom Ltd (NASDAQ:SILC) Short Interest Down 38.7% in March

Key Points

• Short interest plunged 38.7% to 7,366 shares as of March 31, leaving a days-to-cover ratio of just 0.2 and only 0.2% of the float sold short.
• Large institutional buying occurred in Q4—Hudson Bay Capital and Nano Cap New Millennium established multimillion-dollar stakes—and hedge funds/institutions now own about 52.85% of the stock.
• Silicom remains unprofitable (market cap ~$125.1M); it reported Q4 EPS of -$0.34 and revenue that beat estimates, but negative margins and a consensus analyst rating of "Reduce" (including a Weiss "sell (d-)") signal continued caution.

Silicom Ltd (NASDAQ:SILC - Get Free Report) was the target of a significant decline in short interest in March. As of March 31st, there was short interest totaling 7,366 shares, a decline of 38.7% from the March 15th total of 12,019 shares. Based on an average daily trading volume, of 41,234 shares, the days-to-cover ratio is currently 0.2 days. Currently, 0.2% of the company's shares are sold short.

Institutional Trading of Silicom

A number of institutional investors have recently bought and sold shares of the business. Hudson Bay Capital Management LP purchased a new stake in Silicom during the 4th quarter worth about $3,306,000. Nano Cap New Millennium Growth Fund L P purchased a new stake in Silicom during the 4th quarter worth about $2,639,000. Citadel Advisors LLC lifted its holdings in Silicom by 7.3% during the 3rd quarter. Citadel Advisors LLC now owns 16,492 shares of the technology company's stock worth $292,000 after buying an additional 1,117 shares during the last quarter. Susquehanna International Group LLP purchased a new stake in Silicom during the 3rd quarter worth about $277,000. Finally, GSA Capital Partners LLP lifted its holdings in Silicom by 19.2% during the 3rd quarter. GSA Capital Partners LLP now owns 14,685 shares of the technology company's stock worth $260,000 after buying an additional 2,361 shares during the last quarter. 52.85% of the stock is owned by hedge funds and other institutional investors.

Silicom Price Performance

Shares of NASDAQ SILC opened at $22.06 on Monday. The company has a market capitalization of $125.08 million, a price-to-earnings ratio of -10.98 and a beta of 0.98. The business has a 50-day moving average of $20.18 and a two-hundred day moving average of $17.28. Silicom has a 1 year low of $12.66 and a 1 year high of $23.40.

Silicom (NASDAQ:SILC - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The technology company reported ($0.34) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.37) by $0.03. The company had revenue of $16.91 million during the quarter, compared to the consensus estimate of $15.65 million. Silicom had a negative return on equity of 9.50% and a negative net margin of 18.54%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Silicom in a research note on Monday, December 29th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce".

About Silicom

Silicom Ltd. is an Israel‐based provider of advanced networking infrastructure products designed to enhance data throughput, security, and functionality in enterprise, cloud, telecommunications, and edge‐computing environments. The company develops and manufactures a range of network interface cards (NICs), specialized adapters, and turnkey network appliances that support high‐performance packet processing, encryption, compression, and traffic optimization. Silicom's solutions are engineered to offload complex network functions from central processing units, enabling customers to achieve greater efficiency, reliability, and scalability in their data centers.

Founded in 1987 and headquartered in Lod, Israel, Silicom has grown from a niche hardware developer into a global supplier of connectivity and networking solutions.

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