Silicon Motion Technology (NASDAQ:SIMO) Trading 10.3% Higher - Here's What Happened

Key Points

• Silicon Motion Technology shares jumped 10.3% on Monday, trading as high as $332.88 after closing at $305.28, though volume was below average.
• Recent analyst sentiment is broadly positive, with multiple firms raising price targets and the stock carrying a consensus “Buy” rating and an average target of $246.43.
• The company’s latest earnings beat expectations, posting $1.58 EPS versus $1.31 expected and revenue of $342.11 million, up 105.5% year over year.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s stock price traded up 10.3% during trading on Monday . The stock traded as high as $332.88 and last traded at $336.6830. 431,468 shares changed hands during trading, a decline of 49% from the average daily volume of 850,576 shares. The stock had previously closed at $305.28.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Craig Hallum reissued a "buy" rating and issued a $250.00 price target on shares of Silicon Motion Technology in a report on Thursday, April 30th. Weiss Ratings downgraded shares of Silicon Motion Technology from a "buy (b-)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. upped their price objective on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Wedbush increased their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the company an "outperform" rating in a research note on Monday, June 22nd. Finally, Zacks Research upgraded Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Silicon Motion Technology currently has a consensus rating of "Buy" and an average price target of $246.43.

Silicon Motion Technology Stock Up 8.4%

The company has a market capitalization of $11.22 billion, a price-to-earnings ratio of 65.84, a P/E/G ratio of 0.68 and a beta of 1.72. The business has a fifty day simple moving average of $252.00 and a two-hundred day simple moving average of $163.51.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates of $1.31 by $0.27. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The firm had revenue of $342.11 million for the quarter, compared to analysts' expectations of $299.53 million. During the same period in the prior year, the business posted $0.60 earnings per share. The business's revenue was up 105.5% compared to the same quarter last year. As a group, equities analysts predict that Silicon Motion Technology Corporation will post 8.35 earnings per share for the current fiscal year.

Insider Activity at Silicon Motion Technology

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

Institutional Trading of Silicon Motion Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its position in Silicon Motion Technology by 87.6% during the 1st quarter. Royal Bank of Canada now owns 69,660 shares of the semiconductor producer's stock valued at $3,522,000 after purchasing an additional 32,527 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Silicon Motion Technology by 155.0% during the first quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer's stock worth $3,741,000 after buying an additional 44,976 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Silicon Motion Technology by 2.6% during the second quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer's stock worth $2,842,000 after buying an additional 962 shares during the last quarter. Creative Planning acquired a new position in Silicon Motion Technology in the second quarter valued at approximately $324,000. Finally, Legal & General Group Plc lifted its holdings in Silicon Motion Technology by 141.4% in the second quarter. Legal & General Group Plc now owns 9,738 shares of the semiconductor producer's stock valued at $732,000 after buying an additional 5,704 shares during the period. 78.02% of the stock is currently owned by institutional investors and hedge funds.

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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