Silicon Motion Technology (NASDAQ:SIMO) Reaches New 12-Month High - Still a Buy?

Key Points

• After reaching an intraday 52-week high of $243.89, SIMO last traded at $227.16 (previous close $234.52) on volume of about 1.25M shares, trading down roughly 3.1% from the high.
• Analysts remain largely positive—11 Buy and 1 Hold—giving a consensus rating of "Moderate Buy" with a consensus price target of $205.63, while firms like Roth MKM and Wedbush have raised targets to $250 and $230 respectively.
• Silicon Motion reported a strong quarter with $1.58 EPS (vs. $1.31 expected) and $342.11M revenue (vs. $299.53M), a 105.5% YoY revenue increase; the company has a $7.72B market cap and roughly 78% institutional ownership.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $243.89 and last traded at $227.16, with a volume of 1250049 shares trading hands. The stock had previously closed at $234.52.

Analysts Set New Price Targets

SIMO has been the topic of a number of analyst reports. William Blair initiated coverage on shares of Silicon Motion Technology in a report on Thursday, January 22nd. They set an "outperform" rating on the stock. Zacks Research downgraded shares of Silicon Motion Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Wedbush lifted their price objective on shares of Silicon Motion Technology from $180.00 to $230.00 and gave the stock an "outperform" rating in a report on Thursday. Roth Mkm reaffirmed a "buy" rating and set a $250.00 price objective on shares of Silicon Motion Technology in a report on Wednesday, April 29th. Finally, Needham & Company LLC lifted their price objective on shares of Silicon Motion Technology from $125.00 to $155.00 and gave the stock a "buy" rating in a report on Thursday, February 5th. Eleven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Silicon Motion Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $205.63.

Silicon Motion Technology Trading Down 3.1%

The stock has a market capitalization of $7.72 billion, a PE ratio of 45.16, a P/E/G ratio of 0.77 and a beta of 1.67. The stock's fifty day simple moving average is $130.66 and its 200-day simple moving average is $112.17.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.27. The company had revenue of $342.11 million for the quarter, compared to analysts' expectations of $299.53 million. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The business's revenue for the quarter was up 105.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.60 EPS. As a group, analysts anticipate that Silicon Motion Technology Corporation will post 7.3 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Silicon Motion Technology

A number of hedge funds have recently made changes to their positions in SIMO. Royal Bank of Canada raised its stake in shares of Silicon Motion Technology by 87.6% during the 1st quarter. Royal Bank of Canada now owns 69,660 shares of the semiconductor producer's stock worth $3,522,000 after purchasing an additional 32,527 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Silicon Motion Technology by 155.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer's stock worth $3,741,000 after purchasing an additional 44,976 shares during the period. Geode Capital Management LLC raised its stake in shares of Silicon Motion Technology by 2.6% during the 2nd quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer's stock worth $2,842,000 after purchasing an additional 962 shares during the period. Creative Planning bought a new stake in shares of Silicon Motion Technology during the 2nd quarter worth $324,000. Finally, Legal & General Group Plc raised its stake in shares of Silicon Motion Technology by 141.4% during the 2nd quarter. Legal & General Group Plc now owns 9,738 shares of the semiconductor producer's stock worth $732,000 after purchasing an additional 5,704 shares during the period. 78.02% of the stock is currently owned by 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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