SiTime (NASDAQ:SITM) Shares Down 9.7% - Should You Sell?

Key Points

• SiTime shares fell 9.7% to approximately $677, with trading volume 66% below the average session volume.
• Analyst sentiment remains positive overall: the stock has a “Moderate Buy” consensus rating from MarketBeat, with a $688.75 average price target, though ratings range from Strong Buy to Sell.
• SiTime exceeded quarterly expectations, reporting $2.34 in EPS versus $1.95 expected and $157.43 million in revenue, up 126.5% year over year. However, insiders sold $50 million of shares over the past three months, while institutional investors own 84.31% of the stock.

SiTime Corporation (NASDAQ:SITM - Get Free Report) dropped 9.7% during trading on Tuesday . The company traded as low as $672.90 and last traded at $677.0070. Approximately 162,577 shares traded hands during trading, a decline of 66% from the average session volume of 483,755 shares. The stock had previously closed at $749.44.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on SITM shares. The Goldman Sachs Group reissued a "buy" rating and set a $900.00 price objective on shares of SiTime in a research note on Thursday, August 6th. Wall Street Zen upgraded SiTime from a "hold" rating to a "buy" rating in a report on Sunday, July 12th. Roth Capital reissued a "buy" rating and set a $900.00 price target on shares of SiTime in a research note on Thursday, May 7th. Weiss Ratings restated a "sell (d-)" rating on shares of SiTime in a report on Friday, July 17th. Finally, Zacks Research raised SiTime from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, SiTime has a consensus rating of "Moderate Buy" and a consensus target price of $688.75.

SiTime Stock Down 9.3%

The stock has a fifty day moving average of $638.75 and a two-hundred day moving average of $544.35. The company has a quick ratio of 18.50, a current ratio of 19.44 and a debt-to-equity ratio of 1.29. The stock has a market cap of $20.44 billion, a price-to-earnings ratio of 1,386.91 and a beta of 2.94.

SiTime (NASDAQ:SITM - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $2.34 EPS for the quarter, topping the consensus estimate of $1.95 by $0.39. The company had revenue of $157.43 million during the quarter, compared to analyst estimates of $146.46 million. SiTime had a return on equity of 4.99% and a net margin of 3.01%.The firm's revenue was up 126.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.47 earnings per share. SiTime has set its Q3 2026 guidance at 3.500-3.650 EPS. As a group, analysts predict that SiTime Corporation will post 6.33 EPS for the current fiscal year.

Insider Transactions at SiTime

In other news, insider Fariborz Assaderaghi sold 1,709 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $731.49, for a total value of $1,250,116.41. Following the completion of the sale, the insider owned 81,436 shares of the company's stock, valued at $59,569,619.64. This represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rajesh Vashist sold 30,000 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $701.13, for a total transaction of $21,033,900.00. Following the completion of the transaction, the chief executive officer directly owned 402,898 shares in the company, valued at approximately $282,483,874.74. This represents a 6.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 69,759 shares of company stock valued at $50,046,035 in the last three months. 1.40% of the stock is owned by company insiders.

Institutional Trading of SiTime

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of SiTime during the second quarter worth about $1,781,937,000. Norges Bank acquired a new stake in shares of SiTime in the fourth quarter valued at about $83,977,000. Whale Rock Capital Management LLC grew its stake in shares of SiTime by 45.4% in the fourth quarter. Whale Rock Capital Management LLC now owns 698,539 shares of the company's stock valued at $246,717,000 after buying an additional 218,038 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of SiTime by 61.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 562,892 shares of the company's stock valued at $198,808,000 after buying an additional 213,242 shares during the period. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in shares of SiTime during the 4th quarter valued at about $59,452,000. 84.31% of the stock is owned by hedge funds and other institutional investors.

SiTime Company Profile

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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