Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 6.9% - Time to Sell?

Key Points

• Silicon Motion Technology shares fell 6.9% on Monday, trading as low as $301.11 after closing at $326.35 the prior session. Volume was far below normal, with only 78,757 shares traded versus an average of 843,294.
• Analyst sentiment remains broadly positive despite a recent downgrade from Weiss Ratings. The stock still carries a consensus “Buy” rating, with a consensus price target of $246.43.
• Recent earnings were strong, with the company reporting $1.58 EPS and $342.11 million in revenue, both above estimates. Revenue also jumped 105.5% year over year, even as insiders sold some shares in recent months.

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) dropped 6.9% during mid-day trading on Monday . The stock traded as low as $301.11 and last traded at $303.8840. 78,757 shares traded hands during trading, a decline of 91% from the average daily volume of 843,294 shares. The stock had previously closed at $326.35.

Analyst Ratings Changes

A number of brokerages recently commented on SIMO. 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. JPMorgan Chase & Co. increased their target price on Silicon Motion Technology from $145.00 to $260.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Weiss Ratings downgraded Silicon Motion Technology from a "buy (b-)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. Susquehanna boosted their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the stock a "positive" rating in a research report on Thursday, April 30th. Finally, B. Riley Financial restated a "buy" rating 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 given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Silicon Motion Technology presently has a consensus rating of "Buy" and a consensus target price of $246.43.

Silicon Motion Technology Stock Performance

The business's fifty day moving average price is $285.03 and its two-hundred day moving average price is $179.48. The firm has a market capitalization of $10.31 billion, a P/E ratio of 60.48, a PEG ratio of 0.72 and a beta of 1.70.

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

Insiders Place Their Bets

In other news, Director Han-Ping Shieh sold 1,000 shares of the company's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the transaction, the director directly owned 7,500 shares of the company's stock, valued at approximately $2,460,000. This represents a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Kuan-Ming Lin sold 2,000 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the sale, the director owned 8,500 shares of the company's stock, valued at approximately $2,592,500. This represents a 19.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 4,000 shares of company stock worth $1,239,250. Insiders own 5.34% of the company's stock.

Institutional Investors Weigh In On Silicon Motion Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SIMO. Reinhart Partners LLC. grew its stake in shares of Silicon Motion Technology by 4.8% during the fourth quarter. Reinhart Partners LLC. now owns 1,573,355 shares of the semiconductor producer's stock worth $145,851,000 after acquiring an additional 72,421 shares during the last quarter. Hawk Ridge Capital Management LP increased its holdings in shares of Silicon Motion Technology by 48.9% during the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer's stock valued at $131,752,000 after acquiring an additional 385,568 shares in the last quarter. Lazard Asset Management LLC raised its position in shares of Silicon Motion Technology by 2.3% in the 3rd quarter. Lazard Asset Management LLC now owns 783,663 shares of the semiconductor producer's stock valued at $74,299,000 after purchasing an additional 17,741 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its stake in Silicon Motion Technology by 40.9% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 623,953 shares of the semiconductor producer's stock worth $57,840,000 after purchasing an additional 181,206 shares in the last quarter. Finally, Wolf Hill Capital Management LP purchased a new stake in Silicon Motion Technology during the 4th quarter worth approximately $53,893,000. 78.02% of the stock is currently owned by hedge funds and other 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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