Silicon Motion Technology (NASDAQ:SIMO) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Silicon Motion Technology from “strong buy” to “buy,” though the broader analyst consensus remains “Buy,” with an average price target of $341.43.
• Silicon Motion reported strong quarterly results, earning $2.43 per share versus the $2.13 estimate and generating $451 million in revenue, up 127% year over year.
• The stock opened at $268.90, below its 12-month high of $355.00; insiders sold 4,000 shares worth about $1.24 million over the past three months, while institutional investors own 78.02% of the company.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

A number of other research analysts have also recently weighed in on the company. B. Riley Financial raised their price target on Silicon Motion Technology from $312.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Craig Hallum reaffirmed a "buy" rating and set a $325.00 price target on shares of Silicon Motion Technology in a research note on Friday, July 31st. Wedbush boosted their price objective on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a research report on Monday, June 22nd. Zacks Research raised shares of Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 5th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Silicon Motion Technology in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $341.43.

Silicon Motion Technology Price Performance

Shares of NASDAQ:SIMO opened at $268.90 on Friday. The business's 50 day simple moving average is $282.15 and its 200-day simple moving average is $206.19. The firm has a market capitalization of $9.12 billion, a price-to-earnings ratio of 31.52, a price-to-earnings-growth ratio of 0.43 and a beta of 1.71. Silicon Motion Technology has a 12 month low of $71.35 and a 12 month high of $355.00.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, topping analysts' consensus estimates of $2.13 by $0.30. The business had revenue of $451.00 million for the quarter, compared to analysts' expectations of $403.41 million. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%.The company's revenue was up 127.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.69 EPS. On average, equities analysts anticipate that Silicon Motion Technology will post 10.78 earnings per share for the current year.

Insider Buying and Selling at Silicon Motion Technology

In other news, 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 value of $610,000.00. Following the sale, the director directly owned 8,500 shares in the company, valued at $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the 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 sale, 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,000 shares of company stock valued at $1,239,250 in the last three months. 5.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Reinhart Partners LLC. boosted its stake in shares of Silicon Motion Technology by 4.8% during the 4th quarter. Reinhart Partners LLC. now owns 1,573,355 shares of the semiconductor producer's stock worth $145,851,000 after purchasing an additional 72,421 shares during the last quarter. Hawk Ridge Capital Management LP raised its position in shares of Silicon Motion Technology by 48.9% in the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer's stock valued at $131,752,000 after buying an additional 385,568 shares during the last quarter. Lazard Asset Management LLC lifted its stake in shares of Silicon Motion Technology by 2.3% during the third quarter. Lazard Asset Management LLC now owns 783,663 shares of the semiconductor producer's stock valued at $74,299,000 after buying an additional 17,741 shares during the period. Wolf Hill Capital Management LP purchased a new position in shares of Silicon Motion Technology during the fourth quarter valued at approximately $53,893,000. Finally, Summit Partners Public Asset Management LLC boosted its position in Silicon Motion Technology by 33.7% during the fourth quarter. Summit Partners Public Asset Management LLC now owns 534,932 shares of the semiconductor producer's stock worth $49,588,000 after acquiring an additional 134,927 shares during the last quarter. Institutional investors and hedge funds 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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