Silicon Motion Technology (NASDAQ:SIMO) Posts Earnings Results

Key Points

• Silicon Motion reported quarterly EPS of $3.99, beating the $2.13 consensus estimate by $1.86; its net margin was 16.02% and return on equity was 20.24%.
• Shares fell $11.74 to $209.68 in heavy trading, despite analysts maintaining an overall “Buy” rating and an average price target of $246.43.
• Insiders sold 4,000 shares worth approximately $1.24 million over the past 90 days, while institutional and hedge-fund investors own 78.02% of the company.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) issued its quarterly earnings results on Wednesday. The semiconductor producer reported $3.99 earnings per share for the quarter, topping the consensus estimate of $2.13 by $1.86, Zacks reports. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.

Silicon Motion Technology Stock Performance

Shares of SIMO traded down $11.74 on Wednesday, hitting $209.68. 1,622,549 shares of the stock traded hands, compared to its average volume of 851,199. Silicon Motion Technology has a one year low of $71.35 and a one year high of $355.00. The company has a market capitalization of $7.11 billion, a PE ratio of 41.69, a P/E/G ratio of 0.54 and a beta of 1.70. The business has a 50 day simple moving average of $290.45 and a 200 day simple moving average of $194.55.

Analyst Ratings Changes

SIMO has been the topic of several research reports. 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. B. Riley Financial reaffirmed a "buy" rating on shares of Silicon Motion Technology in a research note on Thursday, April 30th. Wall Street Zen lowered shares of Silicon Motion Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 4th. Wedbush boosted their price target on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a research report on Monday, June 22nd. Finally, JPMorgan Chase & Co. boosted their price target on Silicon Motion Technology from $145.00 to $260.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $246.43.

Insider Activity at Silicon Motion Technology

In related news, Director Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction that occurred 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 transaction, the director directly owned 8,500 shares of the company's stock, valued at approximately $2,592,500. This represents a 19.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 owned 7,500 shares in the company, valued at approximately $2,460,000. This represents a 11.76% decrease in their ownership of the stock. 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 over the last ninety days. 5.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Silicon Motion Technology

Several institutional investors have recently modified their holdings of the business. Pacer Advisors Inc. lifted its stake in Silicon Motion Technology by 80.0% during the 4th quarter. Pacer Advisors Inc. now owns 3,357 shares of the semiconductor producer's stock valued at $311,000 after acquiring an additional 1,492 shares during the period. XTX Topco Ltd purchased a new stake in shares of Silicon Motion Technology during the 4th quarter valued at about $2,953,000. Voloridge Investment Management LLC bought a new stake in shares of Silicon Motion Technology in the fourth quarter worth approximately $10,425,000. Sora Investors LLC grew its stake in shares of Silicon Motion Technology by 79.2% in the fourth quarter. Sora Investors LLC now owns 128,221 shares of the semiconductor producer's stock worth $11,886,000 after acquiring an additional 56,687 shares during the period. Finally, Numerai GP LLC purchased a new position in shares of Silicon Motion Technology during the fourth quarter valued at approximately $214,000. 78.02% of the stock is owned by hedge funds and other institutional investors.

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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