Silicon Motion Technology (NASDAQ:SIMO) Trading Down 9.6% - Here's Why

Key Points

• Silicon Motion Technology fell 9.6% to about $244.80, with trading volume down 83% from its average. The stock had closed at $270.90.
• Despite the selloff, analysts remain broadly positive, with a consensus “Buy” rating and an average price target of $246.43. The company recently beat quarterly estimates, reporting $1.58 EPS and $342.11 million in revenue, up 105.5% year over year.
• Insiders sold 4,000 shares worth roughly $1.24 million over the past 90 days, while institutional investors own 78.02% of the company’s stock.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) was down 9.6% during trading on Monday . The stock traded as low as $247.51 and last traded at $244.7950. 141,806 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 831,525 shares. The stock had previously closed at $270.90.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SIMO. Susquehanna increased their target price on shares of Silicon Motion Technology from $175.00 to $275.00 and gave the company a "positive" rating in a report on Thursday, April 30th. Zacks Research upgraded Silicon Motion Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Roth Capital reaffirmed a "buy" rating and issued a $250.00 price objective on shares of Silicon Motion Technology in a research note on Wednesday, April 29th. B. Riley Financial reiterated a "buy" rating on shares of Silicon Motion Technology in a research report on Thursday, April 30th. Finally, Craig Hallum restated a "buy" rating and issued a $250.00 price target on shares of Silicon Motion Technology in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $246.43.

Silicon Motion Technology Trading Down 10.0%

The firm has a market capitalization of $8.27 billion, a PE ratio of 48.72, a PEG ratio of 0.60 and a beta of 1.70. The stock's 50 day moving average price is $290.99 and its two-hundred day moving average price is $192.86.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last posted its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.27. The firm had revenue of $342.11 million for the quarter, compared to analyst estimates of $299.53 million. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.Silicon Motion Technology's revenue was up 105.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 EPS. Analysts expect that Silicon Motion Technology Corporation will post 8.48 earnings per share for the current year.

Insider Buying and Selling at Silicon Motion Technology

In related news, Director Kuan-Ming Lin sold 2,000 shares of the stock in a transaction 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 sale, the director owned 8,500 shares of the company's stock, valued at $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction dated 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 represents a 11.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 4,000 shares of company stock worth $1,239,250 over the last 90 days. Company insiders own 5.34% of the company's stock.

Hedge Funds Weigh In On Silicon Motion Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada grew its stake in Silicon Motion Technology by 87.6% in the 1st quarter. Royal Bank of Canada now owns 69,660 shares of the semiconductor producer's stock worth $3,522,000 after acquiring an additional 32,527 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Silicon Motion Technology by 155.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer's stock worth $3,741,000 after purchasing an additional 44,976 shares during the period. Geode Capital Management LLC lifted its stake in shares of Silicon Motion Technology by 2.6% during the 2nd quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer's stock worth $2,842,000 after purchasing an additional 962 shares during the period. Creative Planning acquired a new stake in shares of Silicon Motion Technology during the second quarter worth $324,000. Finally, Legal & General Group Plc grew its position in shares of 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 purchasing an additional 5,704 shares during the period. Hedge funds and other 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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