Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up Following Better-Than-Expected Earnings

Silicon Motion Technology Co. (NASDAQ:SIMO - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $45.16, but opened at $48.65. Silicon Motion Technology shares last traded at $51.26, with a volume of 224,842 shares changing hands.

The semiconductor producer reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.16. The company had revenue of $166.49 million for the quarter, compared to analyst estimates of $162.69 million. Silicon Motion Technology had a net margin of 11.29% and a return on equity of 11.63%. The firm's revenue was down 12.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.64 EPS.

Silicon Motion Technology announced that its board has authorized a stock buyback plan on Wednesday, February 5th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the semiconductor producer to reacquire up to 2.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of brokerages have issued reports on SIMO. B. Riley upped their target price on Silicon Motion Technology from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday. Wedbush reaffirmed an "outperform" rating and issued a $90.00 price objective on shares of Silicon Motion Technology in a research note on Wednesday. Bank of America upgraded shares of Silicon Motion Technology from an "underperform" rating to a "neutral" rating and set a $47.00 target price on the stock in a research report on Wednesday, April 23rd. StockNews.com cut shares of Silicon Motion Technology from a "buy" rating to a "hold" rating in a research report on Thursday, February 13th. Finally, Needham & Company LLC cut their price target on shares of Silicon Motion Technology from $70.00 to $65.00 and set a "buy" rating on the stock in a report on Wednesday. Two equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, Silicon Motion Technology has a consensus rating of "Moderate Buy" and a consensus price target of $75.88.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors have recently modified their holdings of SIMO. GAMMA Investing LLC increased its position in shares of Silicon Motion Technology by 123.2% during the 4th quarter. GAMMA Investing LLC now owns 877 shares of the semiconductor producer's stock valued at $47,000 after purchasing an additional 484 shares during the last quarter. Parallel Advisors LLC raised its position in Silicon Motion Technology by 61.8% in the first quarter. Parallel Advisors LLC now owns 1,152 shares of the semiconductor producer's stock worth $58,000 after acquiring an additional 440 shares during the period. Signaturefd LLC boosted its stake in Silicon Motion Technology by 79.3% in the first quarter. Signaturefd LLC now owns 1,664 shares of the semiconductor producer's stock valued at $84,000 after acquiring an additional 736 shares during the last quarter. Menard Financial Group LLC bought a new position in shares of Silicon Motion Technology during the 4th quarter valued at approximately $88,000. Finally, Blue Trust Inc. increased its stake in shares of Silicon Motion Technology by 64.7% during the 4th quarter. Blue Trust Inc. now owns 2,248 shares of the semiconductor producer's stock worth $122,000 after purchasing an additional 883 shares during the last quarter. 78.02% of the stock is owned by institutional investors.

Silicon Motion Technology Trading Up 6.3 %

The business's fifty day moving average is $48.31 and its 200 day moving average is $52.54. The company has a market cap of $1.80 billion, a P/E ratio of 19.89, a PEG ratio of 1.36 and a beta of 0.81.

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.