Silicon Motion Technology Corporation (NASDAQ:SIMO) Receives Consensus Recommendation of "Buy" from Brokerages

Key Points

• Silicon Motion Technology Corporation (NASDAQ:SIMO) has received a consensus "Buy" rating from ten brokerages, with an average one-year price target of $87.78.
• Frontier Capital Management significantly increased its position in SIMO by 115.4%, now owning over 1.2 million shares valued at approximately $96.3 million.
• The company reported a Q2 EPS of $0.69, exceeding analyst expectations, despite a 5.7% year-over-year revenue decline.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) has been assigned a consensus rating of "Buy" from the ten brokerages that are covering the stock, Marketbeat reports. Ten analysts have rated the stock with a buy rating. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $87.7778.

A number of brokerages have commented on SIMO. Needham & Company LLC increased their price objective on Silicon Motion Technology from $65.00 to $90.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Citigroup raised Silicon Motion Technology to a "buy" rating in a research note on Wednesday, June 18th. Bank of America upgraded Silicon Motion Technology from a "neutral" rating to a "buy" rating and set a $90.00 price objective for the company in a research report on Wednesday, June 18th. Craig Hallum upped their target price on shares of Silicon Motion Technology from $70.00 to $100.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Susquehanna raised their target price on shares of Silicon Motion Technology from $90.00 to $95.00 and gave the company a "positive" rating in a research note on Friday, August 1st.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Frontier Capital Management Co. LLC boosted its position in shares of Silicon Motion Technology by 115.4% in the 2nd quarter. Frontier Capital Management Co. LLC now owns 1,281,115 shares of the semiconductor producer's stock worth $96,301,000 after purchasing an additional 686,261 shares during the last quarter. Invesco Ltd. boosted its holdings in Silicon Motion Technology by 61.3% during the first quarter. Invesco Ltd. now owns 1,675,648 shares of the semiconductor producer's stock worth $84,721,000 after buying an additional 636,869 shares during the last quarter. Ophir Asset Management Pty Ltd bought a new position in Silicon Motion Technology during the second quarter worth about $27,941,000. SG Capital Management LLC acquired a new stake in shares of Silicon Motion Technology in the 4th quarter valued at approximately $15,006,000. Finally, Boston Partners raised its position in shares of Silicon Motion Technology by 77.3% in the 1st quarter. Boston Partners now owns 552,139 shares of the semiconductor producer's stock valued at $27,900,000 after acquiring an additional 240,737 shares during the period. Institutional investors and hedge funds own 78.02% of the company's stock.

Silicon Motion Technology Stock Performance

Shares of NASDAQ:SIMO opened at $83.70 on Thursday. The business has a fifty day moving average of $76.26 and a 200-day moving average of $63.03. Silicon Motion Technology has a twelve month low of $37.21 and a twelve month high of $85.50. The firm has a market cap of $2.84 billion, a PE ratio of 35.32, a price-to-earnings-growth ratio of 4.19 and a beta of 0.99.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The semiconductor producer reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $0.15. Silicon Motion Technology had a net margin of 10.36% and a return on equity of 10.14%. The firm had revenue of $198.68 million for the quarter, compared to analyst estimates of $180.40 million. During the same quarter in the prior year, the firm earned $0.96 EPS. The company's revenue was down 5.7% on a year-over-year basis. Silicon Motion Technology has set its Q3 2025 guidance at EPS. On average, analysts anticipate that Silicon Motion Technology will post 3.08 EPS for the current fiscal year.

Silicon Motion Technology Company Profile

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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