SiTime (NASDAQ:SITM) Shares Down 7.7% - What's Next?

Key Points

• SiTime shares fell 7.7% in mid-day trading to about $511.87, on volume far below the stock’s average. The company has a $13.71 billion market capitalization and its shares remain highly volatile.
• Analyst sentiment is broadly positive, with an average “Moderate Buy” rating and a $661.88 price target. Barclays and Needham raised their targets to $850, while Weiss Ratings maintained a sell rating.
• SiTime’s latest quarterly results exceeded expectations: adjusted EPS was $1.44 versus $1.14 expected, and revenue rose 88.3% year over year to $113.57 million. However, insiders sold about $50.2 million of stock over the past 90 days.

SiTime Corporation (NASDAQ:SITM - Get Free Report)'s share price traded down 7.7% during mid-day trading on Monday . The stock traded as low as $524.14 and last traded at $511.8660. 27,854 shares changed hands during trading, a decline of 94% from the average session volume of 476,374 shares. The stock had previously closed at $554.46.

Analysts Set New Price Targets

SITM has been the topic of several recent analyst reports. Barclays upgraded shares of SiTime from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $400.00 to $850.00 in a report on Thursday, May 7th. Wall Street Zen raised shares of SiTime from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. The Goldman Sachs Group reiterated a "buy" rating and issued a $800.00 price objective on shares of SiTime in a report on Thursday, May 7th. Needham & Company LLC raised their target price on SiTime from $450.00 to $850.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of SiTime in a research report on Friday, July 17th. Eight analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $661.88.

SiTime Stock Down 6.3%

The firm has a market capitalization of $13.71 billion, a price-to-earnings ratio of -514.33 and a beta of 2.91. The business's 50-day simple moving average is $667.85 and its two-hundred day simple moving average is $515.04.

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

Insider Activity at SiTime

In related news, insider Fariborz Assaderaghi sold 1,709 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $731.49, for a total value of $1,250,116.41. Following the sale, the insider owned 81,436 shares in the company, valued at approximately $59,569,619.64. The trade was a 2.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Raman Chitkara sold 2,000 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $727.38, for a total value of $1,454,760.00. Following the transaction, the director directly owned 19,898 shares in the company, valued at approximately $14,473,407.24. The trade was a 9.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 69,709 shares of company stock valued at $50,230,546 over the last ninety days. 1.40% of the stock is owned by insiders.

Institutional Trading of SiTime

Hedge funds have recently made changes to their positions in the business. Rakuten Securities Inc. grew its holdings in shares of SiTime by 188.5% in the fourth quarter. Rakuten Securities Inc. now owns 75 shares of the company's stock valued at $26,000 after purchasing an additional 49 shares in the last quarter. Parallel Advisors LLC boosted its position in SiTime by 26.2% in the 1st quarter. Parallel Advisors LLC now owns 77 shares of the company's stock valued at $27,000 after buying an additional 16 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of SiTime in the fourth quarter worth $33,000. Larson Financial Group LLC grew its stake in shares of SiTime by 3,200.0% in the third quarter. Larson Financial Group LLC now owns 99 shares of the company's stock worth $30,000 after acquiring an additional 96 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in shares of SiTime during the fourth quarter worth $35,000. Institutional investors and hedge funds own 84.31% of the company's stock.

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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