Silicon Motion Technology (NASDAQ:SIMO) Sees Strong Trading Volume - Here's What Happened

Key Points

• Silicon Motion shares fell 2.3% to about $227.25 amid elevated trading activity, with 606,668 shares changing hands—31% below the prior session’s volume.
• Analysts remain bullish after the company exceeded quarterly expectations, reporting $2.43 in EPS and $451 million in revenue, while revenue surged 127% year over year. The consensus rating is “Buy,” with an average price target of $341.43.
• Institutional investors own 78.02% of the stock and several hedge funds increased their positions, while company insiders sold 4,000 shares worth approximately $1.24 million over the past three months.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) saw unusually-high trading volume on Tuesday . 606,668 shares traded hands during mid-day trading, a decline of 31% from the previous session's volume of 882,402 shares.The stock last traded at $227.2530 and had previously closed at $230.61.

Analysts Set New Price Targets

A number of research firms have recently commented on SIMO. Needham & Company LLC increased their price target on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a report on Thursday, July 30th. B. Riley Financial upped their price target on Silicon Motion Technology from $312.00 to $350.00 and gave the company a "buy" rating in a report on Friday, July 31st. Craig Hallum reaffirmed a "buy" rating and set a $325.00 price objective on shares of Silicon Motion Technology in a research report on Friday, July 31st. Wedbush lifted their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a report on Monday, June 22nd. Finally, Roth Capital reissued a "buy" rating and issued a $350.00 target price on shares of Silicon Motion Technology in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $341.43.

Silicon Motion Technology Trading Down 2.3%

The stock has a market capitalization of $7.64 billion, a PE ratio of 26.31, a price-to-earnings-growth ratio of 0.44 and a beta of 1.71. The firm has a 50 day moving average price of $285.71 and a 200 day moving average price of $203.16.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted 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 during the quarter, compared to analyst estimates of $403.41 million. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The company's revenue was up 127.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.69 earnings per share. On average, equities research analysts expect that Silicon Motion Technology Corporation will post 10.78 EPS for the current year.

Insider Activity at Silicon Motion Technology

In other Silicon Motion Technology news, Director Kuan-Ming Lin sold 2,000 shares of the firm'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 transaction of $610,000.00. Following the completion of the transaction, the director owned 8,500 shares in the company, valued at $2,592,500. This trade represents a 19.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Han-Ping Shieh sold 1,000 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the sale, the director owned 7,500 shares in the company, valued at $2,460,000. This represents a 11.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,000 shares of company stock worth $1,239,250 in the last three months. 5.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Silicon Motion Technology

A number of institutional investors have recently modified their holdings of the stock. Wolf Hill Capital Management LP bought a new position in Silicon Motion Technology in the fourth quarter worth approximately $53,893,000. Hawk Ridge Capital Management LP increased its holdings in shares of Silicon Motion Technology by 111.3% in the 4th quarter. Hawk Ridge Capital Management LP now owns 787,747 shares of the semiconductor producer's stock valued at $73,024,000 after acquiring an additional 415,000 shares during the period. Man Group plc increased its holdings in shares of Silicon Motion Technology by 820.7% in the 4th quarter. Man Group plc now owns 381,048 shares of the semiconductor producer's stock valued at $35,323,000 after acquiring an additional 339,663 shares during the period. Arrowstreet Capital Limited Partnership raised its position in shares of Silicon Motion Technology by 112.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer's stock worth $47,802,000 after acquiring an additional 225,221 shares in the last quarter. Finally, AIGH Capital Management LLC bought a new position in shares of Silicon Motion Technology in the 1st quarter worth $22,458,000. 78.02% of the stock is owned by hedge funds and other institutional investors.

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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