Silicon Motion Technology (NASDAQ:SIMO) Issues Quarterly Earnings Results

Key Points

• Silicon Motion reported $1.97 EPS, beating the consensus of $1.28 by $0.69, with a return on equity of 15.21% and a net margin of 13.85%.
• Shares rose about 1.1% to $149.18 on higher-than-average volume; the company has a market capitalization of $5.07 billion, a P/E of 40.98, and a 52-week range of $43.81–$155.73.
• Analysts are broadly positive—11 Buys and 1 Hold with a consensus rating of "Moderate Buy" and an average price target of $136.25 (Wedbush raised its target to $180)—while institutional investors own about 78.02% of the stock after several large stake increases.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) posted its quarterly earnings results on Tuesday. The semiconductor producer reported $1.97 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.69, Zacks reports. Silicon Motion Technology had a return on equity of 15.21% and a net margin of 13.85%.

Silicon Motion Technology Stock Up 1.1%

Shares of SIMO traded up $1.64 during mid-day trading on Tuesday, reaching $149.18. The company had a trading volume of 1,208,950 shares, compared to its average volume of 671,431. Silicon Motion Technology has a 52-week low of $43.81 and a 52-week high of $155.73. The stock has a market capitalization of $5.07 billion, a P/E ratio of 40.98, a PEG ratio of 1.03 and a beta of 1.09. The stock has a 50 day moving average of $127.24 and a two-hundred day moving average of $110.35.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Roth Mkm set a $140.00 price target on Silicon Motion Technology and gave the company a "buy" rating in a research note on Wednesday, February 4th. B. Riley Financial reiterated a "buy" rating on shares of Silicon Motion Technology in a research note on Thursday, February 5th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Silicon Motion Technology in a research note on Friday, March 27th. Wall Street Zen downgraded Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Wedbush boosted their price target on Silicon Motion Technology from $150.00 to $180.00 and gave the company an "outperform" rating in a research note on Tuesday. Eleven analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $136.25.

Institutional Trading of Silicon Motion Technology

A number of hedge funds have recently modified their holdings of the stock. Hawk Ridge Capital Management LP boosted its stake in shares of Silicon Motion Technology by 111.3% in the fourth quarter. Hawk Ridge Capital Management LP now owns 787,747 shares of the semiconductor producer's stock worth $73,024,000 after buying an additional 415,000 shares during the last quarter. Lazard Asset Management LLC boosted its stake in shares of Silicon Motion Technology by 2.3% in the third quarter. Lazard Asset Management LLC now owns 783,663 shares of the semiconductor producer's stock worth $74,299,000 after buying an additional 17,741 shares during the last quarter. Man Group plc boosted its stake in shares of Silicon Motion Technology by 820.7% in the fourth quarter. Man Group plc now owns 381,048 shares of the semiconductor producer's stock worth $35,323,000 after buying an additional 339,663 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Silicon Motion Technology by 17.0% in the second quarter. Bank of America Corp DE now owns 268,095 shares of the semiconductor producer's stock worth $20,153,000 after buying an additional 38,969 shares during the last quarter. Finally, UBS Group AG raised its holdings in Silicon Motion Technology by 35.7% in the 3rd quarter. UBS Group AG now owns 252,993 shares of the semiconductor producer's stock worth $23,986,000 after purchasing an additional 66,526 shares during the period. 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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