Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down - Here's What Happened

Key Points

• Silicon Motion shares opened sharply lower, falling from a previous close of $256.12 to $237.65, with the stock last trading near $237.52.
• The company reported strong quarterly results, earning $2.43 per share versus the $2.13 consensus estimate and generating $451 million in revenue, up 127% year over year.
• Analyst sentiment remains positive, with a consensus “Buy” rating and an average price target of $341.43, although company directors sold a combined 3,000 shares in June.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $256.12, but opened at $237.65. Silicon Motion Technology shares last traded at $237.5240, with a volume of 306,175 shares.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on SIMO. Zacks Research upgraded shares of Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Wall Street Zen upgraded Silicon Motion Technology from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 1st. Weiss Ratings restated a "hold (c)" rating on shares of Silicon Motion Technology in a research note on Monday, August 3rd. Needham & Company LLC boosted their target price on Silicon Motion Technology from $240.00 to $355.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $341.43.

Silicon Motion Technology Stock Performance

The firm has a market cap of $7.87 billion, a P/E ratio of 27.27, a price-to-earnings-growth ratio of 0.44 and a beta of 1.71. The stock's 50 day simple moving average is $286.45 and its 200 day simple moving average is $202.33.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, beating analysts' consensus estimates of $2.13 by $0.30. The firm had revenue of $451.00 million for 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 business's quarterly revenue was up 127.0% compared to the same quarter last year. During the same period last year, the firm earned $0.69 earnings per share. As a group, analysts forecast that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insider Transactions at Silicon Motion Technology

In related 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 transaction of $610,000.00. Following the completion of the sale, the director owned 8,500 shares in the company, valued at approximately $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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 completion of the sale, the director directly owned 7,500 shares of the company's stock, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,000 shares of company stock valued at $1,239,250 in the last quarter. Company insiders own 5.34% of the company's stock.

Hedge Funds Weigh In On Silicon Motion Technology

A number of hedge funds have recently bought and sold shares of the company. Legacy Wealth Asset Management LLC grew its stake in shares of Silicon Motion Technology by 92.3% in the 2nd quarter. Legacy Wealth Asset Management LLC now owns 4,496 shares of the semiconductor producer's stock worth $1,499,000 after acquiring an additional 2,158 shares in the last quarter. UNICOM Systems Inc. bought a new position in shares of Silicon Motion Technology during the second quarter valued at about $13,733,000. Strategic Investment Solutions Inc. IL bought a new position in shares of Silicon Motion Technology during the second quarter valued at about $88,000. Foster Group Inc. bought a new position in shares of Silicon Motion Technology during the second quarter valued at about $307,000. Finally, Mirador Capital Partners LP purchased a new position in Silicon Motion Technology during the second quarter worth about $2,908,000. 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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