Silicon Motion Technology (NASDAQ:SIMO) Shares Up 10.7% After Better-Than-Expected Earnings

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Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) shares shot up 10.7% 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. 276,529 shares were traded during trading, a decline of 37% from the average session volume of 438,283 shares. The stock had previously closed at $76.64.

The semiconductor producer reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.15. Silicon Motion Technology had a net margin of 12.06% and a return on equity of 12.00%. The company had revenue of $198.68 million for the quarter, compared to the consensus estimate of $180.40 million. During the same period in the previous year, the firm posted $0.96 EPS. Silicon Motion Technology's revenue for the quarter was down 5.7% compared to the same quarter last year.

Silicon Motion Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a dividend of $0.50 per share. The ex-dividend date is Thursday, August 7th. This represents a $2.00 annualized dividend and a yield of 2.49%. Silicon Motion Technology's payout ratio is 71.33%.

Analysts Set New Price Targets

Several equities analysts recently commented on SIMO shares. Roth Capital upped their price target on shares of Silicon Motion Technology from $70.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, June 17th. Wedbush reiterated an "outperform" rating and set a $90.00 price objective on shares of Silicon Motion Technology in a research note on Wednesday, April 30th. Needham & Company LLC reduced their price objective on shares of Silicon Motion Technology from $70.00 to $65.00 and set a "buy" rating for the company in a research note on Wednesday, April 30th. Bank of America upgraded shares of Silicon Motion Technology from a "neutral" rating to a "buy" rating and set a $90.00 price objective for the company in a research note on Wednesday, June 18th. Finally, Susquehanna upped their price objective on shares of Silicon Motion Technology from $80.00 to $90.00 and gave the company a "positive" rating in a report on Wednesday, July 23rd. One investment analyst has rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $83.33.

Institutional Trading of Silicon Motion Technology

A number of hedge funds have recently added to or reduced their stakes in SIMO. Quadrant Capital Group LLC lifted its stake 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 buying an additional 267 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Silicon Motion Technology by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 36,248 shares of the semiconductor producer's stock worth $1,959,000 after buying an additional 300 shares in the last quarter. Twinbeech Capital LP lifted its stake in shares of Silicon Motion Technology by 4.2% in the fourth quarter. Twinbeech Capital LP now owns 10,773 shares of the semiconductor producer's stock worth $582,000 after buying an additional 438 shares in the last quarter. Parallel Advisors LLC lifted its stake in shares of 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 buying an additional 440 shares in the last quarter. Finally, GAMMA Investing LLC lifted its stake in shares of Silicon Motion Technology by 118.3% in the second quarter. GAMMA Investing LLC now owns 976 shares of the semiconductor producer's stock worth $73,000 after buying an additional 529 shares in the last quarter. 78.02% of the stock is owned by hedge funds and other institutional investors.

Silicon Motion Technology Price Performance

The company's 50 day moving average price is $70.39 and its two-hundred day moving average price is $58.10. The stock has a market capitalization of $2.73 billion, a PE ratio of 29.55, a P/E/G ratio of 12.52 and a beta of 0.85.

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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