SiTime (NASDAQ:SITM) Posts Quarterly Earnings Results, Beats Expectations By $0.30 EPS

Key Points

• Earnings beat: SiTime reported Q EPS of $1.44 versus $1.14 expected (beat by $0.30) and revenue of $113.6M vs $103.5M, and shares jumped about 4.5% to $623.33 on the news.
• Still unprofitable: The company posted a negative net margin (-13.13%) and negative ROE (-2.06%) and shows a negative P/E, indicating losses despite the beat.
• Market vs. analyst/insider signals: Analysts give a "Moderate Buy" consensus with a $415.63 target well below the current price, while insiders sold roughly 26,178 shares (~$11.3M) in the past three months and institutions own ~84% of the stock.

SiTime (NASDAQ:SITM - Get Free Report) released its earnings results on Wednesday. The company reported $1.44 EPS for the quarter, topping the consensus estimate of $1.14 by $0.30, FiscalAI reports. SiTime had a negative net margin of 13.13% and a negative return on equity of 2.06%. The company had revenue of $113.57 million during the quarter, compared to analysts' expectations of $103.51 million.

SiTime Trading Up 4.5%

Shares of SITM traded up $26.69 during trading hours on Wednesday, reaching $623.33. The company had a trading volume of 599,271 shares, compared to its average volume of 396,437. The firm has a 50 day simple moving average of $410.13 and a 200-day simple moving average of $364.59. SiTime has a 12-month low of $158.63 and a 12-month high of $627.00. The company has a market capitalization of $16.46 billion, a price-to-earnings ratio of -342.49 and a beta of 2.91.

Analysts Set New Price Targets

Several analysts have recently commented on SITM shares. Roth Mkm restated a "buy" rating and issued a $450.00 target price on shares of SiTime in a research note on Thursday, February 5th. Wall Street Zen cut shares of SiTime from a "buy" rating to a "hold" rating in a research note on Saturday, April 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SiTime in a report on Tuesday, April 21st. Stifel Nicolaus increased their price target on shares of SiTime from $450.00 to $500.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Finally, Needham & Company LLC increased their price target on shares of SiTime from $400.00 to $450.00 and gave the company a "buy" rating in a report on Thursday, February 5th. Seven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, SiTime presently has a consensus rating of "Moderate Buy" and a consensus target price of $415.63.

Insider Activity

In other SiTime news, insider Piyush B. Sevalia sold 2,419 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $484.05, for a total transaction of $1,170,916.95. Following the completion of the transaction, the insider directly owned 84,250 shares in the company, valued at approximately $40,781,212.50. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Fariborz Assaderaghi sold 4,984 shares of the firm's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $406.45, for a total transaction of $2,025,746.80. Following the transaction, the insider owned 89,194 shares of the company's stock, valued at $36,252,901.30. This trade represents a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,178 shares of company stock worth $11,282,324 in the last three months. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On SiTime

Several hedge funds have recently added to or reduced their stakes in SITM. Royal Bank of Canada increased its holdings in SiTime by 12.5% during the 1st quarter. Royal Bank of Canada now owns 4,411 shares of the company's stock valued at $675,000 after acquiring an additional 491 shares in the last quarter. Advisors Asset Management Inc. increased its holdings in SiTime by 33.6% during the 1st quarter. Advisors Asset Management Inc. now owns 350 shares of the company's stock valued at $54,000 after acquiring an additional 88 shares in the last quarter. AQR Capital Management LLC increased its holdings in SiTime by 310.8% during the 1st quarter. AQR Capital Management LLC now owns 10,754 shares of the company's stock valued at $1,557,000 after acquiring an additional 8,136 shares in the last quarter. Intech Investment Management LLC increased its holdings in SiTime by 21.6% during the 1st quarter. Intech Investment Management LLC now owns 8,322 shares of the company's stock valued at $1,272,000 after acquiring an additional 1,477 shares in the last quarter. Finally, M&T Bank Corp purchased a new stake in shares of SiTime during the second quarter worth about $240,000. 84.31% of the stock is currently owned by hedge funds and other institutional investors.

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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