Silicon Motion Technology Corporation (NASDAQ:SIMO) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Silicon Motion Technology has an average analyst recommendation of “Buy” from 10 research firms, with 8 buys, 1 strong buy, and 1 hold. The average 12-month price target stands at about $246.43.
• The company’s latest quarterly results beat expectations, with EPS of $1.58 versus the $1.31 estimate and revenue of $342.11 million topping forecasts. Revenue surged 105.5% year over year.
• Insiders have been selling shares recently, including two directors who sold stock in June, while institutional investors remain heavily invested. Hedge funds and other institutions own about 78.02% of the company.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) has been given an average recommendation of "Buy" by the ten research firms that are currently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $246.4286.

A number of research analysts recently weighed in on SIMO shares. Weiss Ratings lowered shares of Silicon Motion Technology from a "buy (b-)" rating to a "hold (c)" rating in a research note on Wednesday, May 6th. Wedbush boosted their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a research note on Monday, June 22nd. JPMorgan Chase & Co. increased their target price on Silicon Motion Technology from $145.00 to $260.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Wall Street Zen downgraded Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, Susquehanna lifted their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the stock a "positive" rating in a research note on Thursday, April 30th.

Silicon Motion Technology Stock Performance

Silicon Motion Technology stock opened at $294.90 on Wednesday. The company's fifty day moving average price is $276.04 and its 200 day moving average price is $174.56. Silicon Motion Technology has a 1 year low of $70.12 and a 1 year high of $355.00. The stock has a market capitalization of $10.00 billion, a P/E ratio of 58.63, a P/E/G ratio of 0.71 and a beta of 1.70.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.31 by $0.27. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. The company had revenue of $342.11 million during the quarter, compared to analysts' expectations of $299.53 million. During the same period in the prior year, the business posted $0.60 earnings per share. The firm's revenue for the quarter was up 105.5% on a year-over-year basis. Sell-side analysts predict that Silicon Motion Technology will post 8.35 EPS for the current year.

Insiders Place Their Bets

In other Silicon Motion Technology news, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total transaction of $328,000.00. Following the sale, the director owned 7,500 shares of the company's stock, valued at $2,460,000. The trade was a 11.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following the sale, the director directly owned 8,500 shares of the company's stock, valued at $2,592,500. The trade was a 19.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,000 shares of company stock worth $1,239,250 in the last 90 days. 5.34% of the stock is currently owned by insiders.

Institutional Trading of Silicon Motion Technology

Several large investors have recently bought and sold shares of SIMO. Y Intercept Hong Kong Ltd boosted its holdings in shares of Silicon Motion Technology by 321.8% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 39,350 shares of the semiconductor producer's stock worth $4,419,000 after purchasing an additional 30,022 shares during the last quarter. Patriot Financial Group Insurance Agency LLC increased its holdings in shares of Silicon Motion Technology by 119.8% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 6,560 shares of the semiconductor producer's stock valued at $737,000 after purchasing an additional 3,576 shares during the last quarter. Apis Capital Advisors LLC lifted its position in Silicon Motion Technology by 11.7% during the third quarter. Apis Capital Advisors LLC now owns 286,000 shares of the semiconductor producer's stock worth $27,116,000 after buying an additional 30,000 shares in the last quarter. SG Americas Securities LLC lifted its position in Silicon Motion Technology by 44.3% during the fourth quarter. SG Americas Securities LLC now owns 16,290 shares of the semiconductor producer's stock worth $1,510,000 after buying an additional 5,002 shares in the last quarter. Finally, UBS Group AG boosted its stake in Silicon Motion Technology by 39.0% during the fourth quarter. UBS Group AG now owns 351,541 shares of the semiconductor producer's stock worth $32,588,000 after buying an additional 98,548 shares during the last quarter. Hedge funds and other 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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