SiTime (NASDAQ:SITM) Reaches New 52-Week High - Here's Why

Key Points

• SiTime shares hit a new 52-week high, trading as high as $859.41 amid heavy volume. The move extended a strong rally well above its 50-day and 200-day moving averages.
• Analysts turned more bullish on the stock, with Needham raising its price target to $850 and UBS lifting its target to $775, both with buy ratings. Overall, the stock now carries a “Moderate Buy” consensus rating.
• Strong quarterly results helped fuel the move, as SiTime reported EPS of $1.44 versus expectations of $1.14 and revenue of $113.57 million, up 88.3% year over year. The company also posted better-than-expected top-line growth despite remaining unprofitable on a net margin basis.

SiTime Corporation (NASDAQ:SITM - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $859.41 and last traded at $855.9470, with a volume of 112069 shares traded. The stock had previously closed at $833.08.

Analysts Set New Price Targets

A number of research firms have weighed in on SITM. Needham & Company LLC raised their price objective on shares of SiTime from $450.00 to $850.00 and gave the company a "buy" rating in a research note on Thursday. UBS Group raised their price objective on shares of SiTime from $675.00 to $775.00 and gave the company a "buy" rating in a research note on Thursday. Stifel Nicolaus raised their price objective on shares of SiTime from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Wall Street Zen upgraded shares of SiTime from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of SiTime in a research note on Tuesday, April 21st. Eight equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $661.88.

SiTime Price Performance

The business's 50 day moving average price is $422.53 and its 200 day moving average price is $370.64. The stock has a market capitalization of $23.80 billion, a P/E ratio of -892.55 and a beta of 2.91.

SiTime (NASDAQ:SITM - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $1.44 EPS for the quarter, topping analysts' consensus estimates of $1.14 by $0.30. SiTime had a negative net margin of 6.38% and a positive return on equity of 0.53%. The firm had revenue of $113.57 million during the quarter, compared to analyst estimates of $103.51 million. During the same period in the previous year, the business posted $0.26 earnings per share. The business's revenue for the quarter was up 88.3% on a year-over-year basis. As a group, analysts forecast that SiTime Corporation will post 1.31 earnings per share for the current fiscal year.

Insider Activity at SiTime

In other news, insider Piyush B. Sevalia sold 2,419 shares of SiTime stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $484.05, for a total value of $1,170,916.95. Following the completion of the sale, the insider directly owned 84,250 shares in the company, valued at $40,781,212.50. The trade was a 2.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available 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 SiTime stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $406.45, for a total transaction of $2,025,746.80. Following the completion of the sale, the insider owned 89,194 shares of the company's stock, valued at $36,252,901.30. This represents a 5.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 22,678 shares of company stock valued at $9,771,269. Insiders own 1.40% of the company's stock.

Institutional Trading of SiTime

A number of large investors have recently made changes to their positions in SITM. Parallel Advisors LLC boosted its holdings in shares of SiTime by 26.2% in the first quarter. Parallel Advisors LLC now owns 77 shares of the company's stock worth $27,000 after buying an additional 16 shares during the last quarter. Los Angeles Capital Management LLC boosted its holdings in shares of SiTime by 0.3% in the fourth quarter. Los Angeles Capital Management LLC now owns 9,023 shares of the company's stock worth $3,187,000 after buying an additional 25 shares during the last quarter. Optiver Holding B.V. boosted its holdings in shares of SiTime by 56.1% in the third quarter. Optiver Holding B.V. now owns 89 shares of the company's stock worth $27,000 after buying an additional 32 shares during the last quarter. Atlas Brown Inc. boosted its holdings in shares of SiTime by 1.6% in the fourth quarter. Atlas Brown Inc. now owns 2,292 shares of the company's stock worth $810,000 after buying an additional 37 shares during the last quarter. Finally, CWM LLC boosted its holdings in shares of SiTime by 4.2% in the fourth quarter. CWM LLC now owns 951 shares of the company's stock worth $336,000 after buying an additional 38 shares during the last quarter. 84.31% of the stock is currently owned by 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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