Silicon Motion Technology (NASDAQ:SIMO) Trading Up 10.7% After Earnings Beat

Key Points

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Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) shares were up 10.7% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $84.45 and last traded at $84.86. Approximately 276,529 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 438,283 shares. The stock had previously closed at $76.64.

The semiconductor producer reported $0.69 EPS for the quarter, beating analysts' consensus estimates of $0.54 by $0.15. The company had revenue of $198.68 million during the quarter, compared to the consensus estimate of $180.40 million. Silicon Motion Technology had a return on equity of 10.14% and a net margin of 10.36%. Silicon Motion Technology's revenue was down 5.7% on a year-over-year basis. During the same period last year, the business posted $0.96 earnings per share.

Silicon Motion Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Thursday, August 7th. Silicon Motion Technology's dividend payout ratio (DPR) is presently 83.97%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on SIMO shares. Bank of America raised Silicon Motion Technology from a "neutral" rating to a "buy" rating and set a $90.00 price target for the company in a research report on Wednesday, June 18th. B. Riley reaffirmed a "buy" rating and set a $90.00 price target (up from $75.00) on shares of Silicon Motion Technology in a research report on Thursday, June 5th. Craig Hallum raised their target price on Silicon Motion Technology from $70.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday. Roth Capital boosted their target price on Silicon Motion Technology from $70.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, June 17th. Finally, Susquehanna boosted their target price on Silicon Motion Technology from $90.00 to $95.00 and gave the company a "positive" rating in a research note on Friday. One equities research analyst has rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $87.78.

Hedge Funds Weigh In On Silicon Motion Technology

A number of large investors have recently made changes to their positions in the stock. Quadrant Capital Group LLC boosted its holdings in shares of Silicon Motion Technology by 7.2% in the fourth quarter. Quadrant Capital Group LLC now owns 3,959 shares of the semiconductor producer's stock worth $214,000 after acquiring an additional 267 shares during the period. Geode Capital Management LLC increased its position in shares of Silicon Motion Technology by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 36,248 shares of the semiconductor producer's stock valued at $1,959,000 after purchasing an additional 300 shares during the last quarter. Twinbeech Capital LP raised its holdings in shares of Silicon Motion Technology by 4.2% during the 4th quarter. Twinbeech Capital LP now owns 10,773 shares of the semiconductor producer's stock valued at $582,000 after buying an additional 438 shares in the last quarter. Parallel Advisors LLC raised its holdings in shares of Silicon Motion Technology by 61.8% during the 1st quarter. Parallel Advisors LLC now owns 1,152 shares of the semiconductor producer's stock valued at $58,000 after buying an additional 440 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Silicon Motion Technology by 118.3% during the 2nd quarter. GAMMA Investing LLC now owns 976 shares of the semiconductor producer's stock valued at $73,000 after buying an additional 529 shares in the last quarter. 78.02% of the stock is owned by institutional investors.

Silicon Motion Technology Stock Performance

The business has a 50 day moving average price of $70.87 and a two-hundred day moving average price of $58.55. The company has a market cap of $2.62 billion, a P/E ratio of 32.51, a price-to-earnings-growth ratio of 3.64 and a beta of 0.92.

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.