Silicon Motion Technology (NASDAQ:SIMO) Trading 9% Higher - Still a Buy?

Key Points

• Silicon Motion shares jumped 9% to about $244.13, with trading volume 33% above the average.
• The company delivered a strong quarterly performance, reporting $2.43 in EPS versus the $2.13 consensus and $451 million in revenue, up 127% year over year.
• Analysts maintain a “Buy” consensus with an average price target of $341.43, though insiders sold 4,000 shares worth approximately $1.24 million during the last quarter.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) was up 9% during mid-day trading on Wednesday . The company traded as high as $244.67 and last traded at $244.13. 1,193,166 shares traded hands during trading, an increase of 33% from the average daily volume of 900,016 shares. The stock had previously closed at $224.00.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Silicon Motion Technology in a research note on Monday, August 3rd. Needham & Company LLC raised their target price on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Susquehanna boosted their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a research note on Friday, July 31st. JPMorgan Chase & Co. upped their price target 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. Finally, Craig Hallum reiterated a "buy" rating and set a $325.00 price target on shares of Silicon Motion Technology in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $341.43.

Silicon Motion Technology Stock Up 9.8%

The business's 50-day moving average price is $284.16 and its 200 day moving average price is $203.90. The company has a market capitalization of $8.34 billion, a P/E ratio of 28.85, a price-to-earnings-growth ratio of 0.40 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, topping analysts' consensus estimates of $2.13 by $0.30. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The business had revenue of $451.00 million for the quarter, compared to analyst estimates of $403.41 million. During the same quarter in the prior year, the firm posted $0.69 EPS. Silicon Motion Technology's revenue was up 127.0% on a year-over-year basis. Analysts anticipate that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Han-Ping Shieh sold 1,000 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the transaction, the director owned 7,500 shares of the company's stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Kuan-Ming Lin sold 2,000 shares of the company'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 transaction of $610,000.00. Following the completion of the transaction, the director owned 8,500 shares in the company, valued at approximately $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 4,000 shares of company stock worth $1,239,250 in the last quarter. 5.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Silicon Motion Technology

A number of institutional investors have recently made changes to their positions in SIMO. Kornitzer Capital Management Inc. KS purchased a new position in shares of Silicon Motion Technology in the first quarter worth about $4,827,000. Schwartz Investment Counsel Inc. lifted its stake in shares of Silicon Motion Technology by 36.4% in the 1st quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer's stock valued at $33,687,000 after acquiring an additional 80,000 shares during the last quarter. AIGH Capital Management LLC purchased a new stake in Silicon Motion Technology during the 1st quarter valued at about $22,458,000. Calamos Advisors LLC purchased a new stake in Silicon Motion Technology during the 1st quarter valued at about $2,686,000. Finally, Elevation Point Wealth Partners LLC bought a new position in Silicon Motion Technology during the 1st quarter worth approximately $496,000. Institutional investors own 78.02% of the company's stock.

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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