Silicon Motion Technology (NASDAQ:SIMO) Trading Down 5.4% - Here's What Happened

Key Points

• Silicon Motion shares fell 5.4% to approximately $252.96 in Friday trading, with volume down 89% from the average session.
• Analysts remain broadly bullish, with an average “Buy” rating and a consensus price target of $341.43; targets range from $260 to $400.
• The company recently exceeded quarterly expectations, reporting $2.43 in EPS versus $2.13 expected and $451 million in revenue, up 127% year over year.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) shares fell 5.4% on Friday . The company traded as low as $265.55 and last traded at $252.9640. Approximately 93,020 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 868,671 shares. The stock had previously closed at $267.43.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on SIMO shares. JPMorgan Chase & Co. boosted their price objective on Silicon Motion Technology from $145.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Zacks Research upgraded shares of Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Craig Hallum reissued a "buy" rating and issued a $325.00 target price on shares of Silicon Motion Technology in a research report on Friday, July 31st. Wedbush boosted their price target on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the company an "outperform" rating in a report on Monday, June 22nd. Finally, B. Riley Financial upped their price target on shares of Silicon Motion Technology from $312.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $341.43.

Silicon Motion Technology Price Performance

The firm has a market cap of $8.79 billion, a PE ratio of 30.33, a P/E/G ratio of 0.43 and a beta of 1.71. The business has a fifty day moving average price of $286.87 and a two-hundred day moving average price of $201.32.

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

Insider Transactions at Silicon Motion Technology

In other news, Director Kuan-Ming Lin sold 2,000 shares of the stock in a transaction that occurred 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 of the company's stock, valued at $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Han-Ping Shieh sold 1,000 shares of the firm's stock in a transaction that occurred 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 sale, the director 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 SEC filing for this sale provides additional information. Insiders sold a total of 4,000 shares of company stock worth $1,239,250 in the last quarter. 5.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Silicon Motion Technology

Institutional investors have recently modified their holdings of the stock. Brown Brothers Harriman & Co. acquired a new position in shares of Silicon Motion Technology in the third quarter worth $26,000. WealthCollab LLC boosted its position in Silicon Motion Technology by 77.4% during the fourth quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer's stock valued at $32,000 after purchasing an additional 151 shares during the last quarter. Cooper Investors PTY Ltd. purchased a new position in Silicon Motion Technology in the second quarter valued at about $34,000. Arax Advisory Partners grew its stake in Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer's stock valued at $41,000 after purchasing an additional 307 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in Silicon Motion Technology by 169.4% in the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer's stock valued at $44,000 after purchasing an additional 366 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source