SiTime (NASDAQ:SITM) Downgraded by Wall Street Zen to Hold

Key Points

• SiTime was downgraded by Wall Street Zen from Buy to Hold, though the stock still carries a consensus rating of Moderate Buy from analysts overall.
• The company reported strong quarterly results, with earnings of $1.44 per share versus the $1.14 estimate and revenue of $113.57 million, up 88.3% from a year earlier.
• Insider selling has been notable, including recent sales by directors Torsten Kreindl and Christine Heckart, with insiders selling 73,375 shares worth about $51.9 million over the past 90 days.

SiTime (NASDAQ:SITM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Other research analysts have also recently issued research reports about the stock. Zacks Research raised shares of SiTime from a "hold" rating to a "strong-buy" rating in a report on Friday, May 15th. Barclays raised shares of SiTime from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $400.00 to $850.00 in a report on Thursday, May 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SiTime in a research report on Tuesday, April 21st. The Goldman Sachs Group reissued a "buy" rating and issued a $800.00 price objective on shares of SiTime in a research note on Thursday, May 7th. Finally, Needham & Company LLC boosted their target price on shares of SiTime from $450.00 to $850.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $661.88.

SiTime Stock Performance

SiTime stock opened at $672.19 on Friday. SiTime has a 52 week low of $186.49 and a 52 week high of $901.81. The stock has a market capitalization of $17.75 billion, a P/E ratio of -665.53 and a beta of 2.94. The stock has a fifty day moving average of $679.31 and a 200-day moving average of $479.34.

SiTime (NASDAQ:SITM - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $1.44 earnings per share for the quarter, beating the consensus estimate of $1.14 by $0.30. SiTime had a positive return on equity of 0.53% and a negative net margin of 6.38%.The business had revenue of $113.57 million for the quarter, compared to analyst estimates of $103.51 million. During the same period last year, the firm posted $0.26 earnings per share. SiTime's revenue was up 88.3% compared to the same quarter last year. On average, research analysts forecast that SiTime will post 3.23 earnings per share for the current year.

Insider Activity

In other news, Director Torsten Kreindl sold 710 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $720.00, for a total value of $511,200.00. Following the completion of the transaction, the director owned 13,141 shares of the company's stock, valued at $9,461,520. This represents a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Christine Heckart sold 1,290 shares of SiTime stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $700.00, for a total transaction of $903,000.00. Following the sale, the director owned 790 shares in the company, valued at approximately $553,000. This represents a 62.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 73,375 shares of company stock valued at $51,931,438. 1.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SiTime

Several institutional investors and hedge funds have recently added to or reduced their stakes in SITM. Vanguard Group Inc. lifted its holdings in shares of SiTime by 2.2% during the fourth quarter. Vanguard Group Inc. now owns 2,825,402 shares of the company's stock worth $997,904,000 after purchasing an additional 61,336 shares during the period. Invesco Ltd. increased its holdings in SiTime by 1.8% in the third quarter. Invesco Ltd. now owns 1,037,305 shares of the company's stock valued at $312,550,000 after purchasing an additional 18,165 shares during the period. State Street Corp increased its holdings in SiTime by 3.7% in the second quarter. State Street Corp now owns 911,280 shares of the company's stock valued at $194,176,000 after purchasing an additional 32,178 shares during the period. Ameriprise Financial Inc. raised its position in SiTime by 22.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 736,281 shares of the company's stock worth $156,887,000 after purchasing an additional 132,948 shares during the last quarter. Finally, Whale Rock Capital Management LLC raised its position in SiTime by 45.4% during the 4th quarter. Whale Rock Capital Management LLC now owns 698,539 shares of the company's stock worth $246,717,000 after purchasing an additional 218,038 shares during the last quarter. 84.31% of the stock is currently owned by institutional investors and hedge funds.

About SiTime

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime's products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company's timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.

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