Silicon Motion Technology (NASDAQ:SIMO) Stock Price Up 7.7% - What's Next?

Key Points

• Silicon Motion Technology's stock price rose by 7.7%, reaching as high as $90.12, despite a significant decrease in trading volume, down 57% from the average.
• Analysts have shown strong support for the stock, with multiple firms upgrading their target prices, leading to a consensus target price of $87.78 and a majority rating it as "Buy."
• For the latest quarter, Silicon Motion reported earnings of $0.69 per share, exceeding expectations, although revenue declined by 5.7% year-over-year.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price traded up 7.7% during trading on Thursday . The stock traded as high as $89.49 and last traded at $90.12. 178,368 shares were traded during mid-day trading, a decline of 57% from the average session volume of 412,447 shares. The stock had previously closed at $83.70.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. B. Riley restated a "buy" rating and issued a $90.00 price target (up previously from $75.00) on shares of Silicon Motion Technology in a research note on Thursday, June 5th. Susquehanna upped their target price on Silicon Motion Technology from $90.00 to $95.00 and gave the stock a "positive" rating in a research report on Friday, August 1st. Citigroup upgraded Silicon Motion Technology to a "buy" rating in a research report on Wednesday, June 18th. Craig Hallum raised their target price on shares of Silicon Motion Technology from $70.00 to $100.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, Needham & Company LLC upped their price target on shares of Silicon Motion Technology from $65.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Ten equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $87.78.

Silicon Motion Technology Price Performance

The business's 50-day moving average price is $76.26 and its two-hundred day moving average price is $63.03. The company has a market capitalization of $3.02 billion, a P/E ratio of 37.60, a PEG ratio of 4.19 and a beta of 0.99.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The semiconductor producer reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.15. Silicon Motion Technology had a net margin of 10.36% and a return on equity of 10.14%. The firm had revenue of $198.68 million for the quarter, compared to analyst estimates of $180.40 million. During the same period in the previous year, the business earned $0.96 EPS. The company's revenue was down 5.7% compared to the same quarter last year. Silicon Motion Technology has set its Q3 2025 guidance at EPS. Research analysts expect that Silicon Motion Technology Corporation will post 3.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in SIMO. Orion Porfolio Solutions LLC raised its stake in shares of Silicon Motion Technology by 0.9% during the second quarter. Orion Porfolio Solutions LLC now owns 17,733 shares of the semiconductor producer's stock valued at $1,333,000 after acquiring an additional 159 shares during the last quarter. Marex Group plc bought a new position in Silicon Motion Technology during the second quarter worth $3,197,000. Headlands Technologies LLC bought a new stake in Silicon Motion Technology in the second quarter valued at $108,000. Corient Private Wealth LLC bought a new stake in Silicon Motion Technology in the second quarter valued at $300,000. Finally, Vident Advisory LLC increased its stake in Silicon Motion Technology by 215.2% in the second quarter. Vident Advisory LLC now owns 29,300 shares of the semiconductor producer's stock valued at $2,203,000 after purchasing an additional 20,004 shares in the last quarter. Institutional investors own 78.02% of the company's stock.

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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