Silicon Motion Technology (NASDAQ:SIMO) Trading 10.7% Higher - Should You Buy?

Key Points

• Silicon Motion Technology (NASDAQ:SIMO) jumped 10.7% in intraday trading, reaching as high as $330.99 after closing at $300.71 the previous day.
• Analysts have been largely bullish: recent calls included upgrades and higher price targets, with the consensus rating standing at Buy and a consensus target price of $246.43.
• The company posted strong quarterly results, beating estimates with $1.58 EPS on $342.11 million in revenue, while revenue more than doubled year over year.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report)'s share price traded up 10.7% during mid-day trading on Monday . The company traded as high as $330.99 and last traded at $332.9560. 90,995 shares were traded during mid-day trading, a decline of 89% from the average session volume of 848,338 shares. The stock had previously closed at $300.71.

Analyst Ratings Changes

Several equities analysts recently commented on SIMO shares. Zacks Research upgraded shares of Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 5th. JPMorgan Chase & Co. lifted their price objective on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. 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. Craig Hallum restated a "buy" rating and set a $250.00 target price on shares of Silicon Motion Technology in a research report on Thursday, April 30th. Finally, Wedbush increased their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an "outperform" rating in a research report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $246.43.

Silicon Motion Technology Stock Performance

The stock has a market capitalization of $11.30 billion, a P/E ratio of 66.31, a price-to-earnings-growth ratio of 0.67 and a beta of 1.70. The firm's fifty day simple moving average is $269.67 and its 200 day simple moving average is $171.43.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last issued its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 EPS for the quarter, beating the consensus estimate of $1.31 by $0.27. The company had revenue of $342.11 million during the quarter, compared to analysts' expectations of $299.53 million. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. The business's revenue for the quarter was up 105.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.60 EPS. Analysts anticipate 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 Silicon Motion Technology news, Director Han-Ping Shieh sold 1,000 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the sale, the director owned 7,500 shares of the company's stock, valued at approximately $2,460,000. This trade represents a 11.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Kuan-Ming Lin sold 2,000 shares of the firm's 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 completion of the sale, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. This represents a 19.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 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

Institutional investors and hedge funds have recently modified their holdings of the business. Pacer Advisors Inc. boosted its stake in Silicon Motion Technology by 25.9% in the first quarter. Pacer Advisors Inc. now owns 4,226 shares of the semiconductor producer's stock valued at $475,000 after buying an additional 869 shares in the last quarter. Bank of America Corp DE raised its stake in Silicon Motion Technology by 33.2% during the first quarter. Bank of America Corp DE now owns 244,387 shares of the semiconductor producer's stock worth $27,442,000 after acquiring an additional 60,970 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Silicon Motion Technology by 78.9% in the first quarter. EverSource Wealth Advisors LLC now owns 1,159 shares of the semiconductor producer's stock worth $130,000 after acquiring an additional 511 shares during the last quarter. Royal Bank of Canada lifted its holdings in shares of Silicon Motion Technology by 4.5% in the first quarter. Royal Bank of Canada now owns 49,037 shares of the semiconductor producer's stock worth $5,506,000 after acquiring an additional 2,110 shares during the last quarter. Finally, Hawk Ridge Capital Management LP lifted its holdings in shares of Silicon Motion Technology by 48.9% in the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer's stock worth $131,752,000 after acquiring an additional 385,568 shares during the last quarter. 78.02% of the stock is currently owned by institutional investors.

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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