Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down - Time to Sell?

Key Points

• Silicon Motion Technology (NASDAQ: SIMO) opened sharply lower, gapping down from $289.08 to $277.33 and last trading around $274.46, a drop of about 5% in early trading.
• Despite the selloff, analysts remain broadly bullish: the stock carries a Buy consensus rating, with several firms recently raising targets or reiterating buy/positive calls.
• The company’s latest earnings were strong, with $1.58 EPS and $342.11 million in revenue both beating estimates, while insider selling by two directors and heavy institutional ownership were also noted.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $289.08, but opened at $277.33. Silicon Motion Technology shares last traded at $274.4550, with a volume of 38,926 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on SIMO shares. Susquehanna raised their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the company a "positive" rating in a report on Thursday, April 30th. B. Riley Financial reissued a "buy" rating on shares of Silicon Motion Technology in a research note on Thursday, April 30th. Roth Capital reissued a "buy" rating and issued a $250.00 price objective on shares of Silicon Motion Technology in a research note on Wednesday, April 29th. Zacks Research upgraded Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Finally, Craig Hallum restated a "buy" rating and issued a $250.00 target price on shares of Silicon Motion Technology in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $246.43.

Silicon Motion Technology Trading Down 5.0%

The company has a market cap of $9.31 billion, a price-to-earnings ratio of 54.21, a P/E/G ratio of 0.62 and a beta of 1.70. The stock has a 50 day moving average price of $290.77 and a two-hundred day moving average price of $191.61.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The semiconductor producer reported $1.58 EPS for the quarter, beating analysts' consensus estimates of $1.31 by $0.27. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The business had revenue of $342.11 million during the quarter, compared to the consensus estimate of $299.53 million. During the same quarter in the prior year, the company posted $0.60 earnings per share. The firm's revenue was up 105.5% on a year-over-year basis. On average, equities analysts forecast that Silicon Motion Technology Corporation will post 8.48 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Han-Ping Shieh sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the transaction, the director owned 7,500 shares in the company, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Kuan-Ming Lin sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total transaction of $610,000.00. Following the completion of the sale, the director directly owned 8,500 shares of the company's stock, valued at $2,592,500. The trade was a 19.05% decrease in their position. 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 quarter. 5.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Silicon Motion Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Assetmark Inc. grew its holdings in Silicon Motion Technology by 2.3% in the 1st quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer's stock valued at $316,000 after buying an additional 63 shares in the last quarter. Wedbush Securities Inc. lifted its holdings in shares of Silicon Motion Technology by 1.7% during the fourth quarter. Wedbush Securities Inc. now owns 4,685 shares of the semiconductor producer's stock worth $434,000 after buying an additional 79 shares in the last quarter. NewEdge Wealth LLC boosted its position in shares of Silicon Motion Technology by 3.6% in the fourth quarter. NewEdge Wealth LLC now owns 2,631 shares of the semiconductor producer's stock valued at $244,000 after acquiring an additional 91 shares during the period. Cooper Investors PTY Ltd. bought a new stake in shares of Silicon Motion Technology in the second quarter valued at about $34,000. Finally, Ballentine Partners LLC grew its stake in shares of Silicon Motion Technology by 2.8% in the fourth quarter. Ballentine Partners LLC now owns 4,006 shares of the semiconductor producer's stock valued at $371,000 after acquiring an additional 110 shares in the last quarter. 78.02% of the stock is 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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