SiTime (NASDAQ:SITM) Shares Gap Down - Here's What Happened

Key Points

• SiTime shares gapped down before trading, opening at $583.51 after closing at $612.38 and last trading around $590.80, a drop of about 6.2% on the session.
• Despite the stock weakness, analyst sentiment remains mostly positive: eight analysts rate SiTime a Buy, with a consensus rating of Moderate Buy and an average target price of $661.88.
• SiTime recently delivered better-than-expected earnings, reporting $1.44 EPS versus the $1.14 estimate and revenue of $113.57 million, up 88.3% year over year, even as some insiders have sold shares recently.

SiTime Corporation (NASDAQ:SITM - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $612.38, but opened at $583.51. SiTime shares last traded at $590.8020, with a volume of 15,320 shares changing hands.

Analyst Ratings Changes

Several analysts have issued reports on SITM shares. Stifel Nicolaus lifted their price target on SiTime from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. UBS Group lifted their price objective on shares of SiTime from $675.00 to $775.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Wall Street Zen raised SiTime from a "hold" rating to a "buy" rating in a report on Sunday. The Goldman Sachs Group restated a "buy" rating and set a $800.00 price objective on shares of SiTime in a research report on Thursday, May 7th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of SiTime in a research report on Tuesday, April 21st. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $661.88.

SiTime Trading Down 6.2%

The stock has a market cap of $15.16 billion, a P/E ratio of -570.16 and a beta of 2.91. The stock has a 50 day simple moving average of $704.29 and a 200 day simple moving average of $504.71.

SiTime (NASDAQ:SITM - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported $1.44 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $113.57 million during the quarter, compared to the consensus estimate of $103.51 million. During the same period in the prior year, the company posted $0.26 EPS. The company's revenue was up 88.3% compared to the same quarter last year. Equities analysts anticipate that SiTime Corporation will post 3.23 earnings per share for the current year.

Insider Buying and Selling at SiTime

In other news, insider Fariborz Assaderaghi sold 1,709 shares of the firm's stock in a transaction that occurred 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 sale, the insider directly owned 81,436 shares in the company, valued at approximately $59,569,619.64. This trade represents a 2.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Akira Takata sold 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $860.86, for a total transaction of $1,291,290.00. Following the completion of the sale, the director owned 12,234 shares in the company, valued at $10,531,761.24. This represents a 10.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 72,128 shares of company stock valued at $51,401,463. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SiTime

Hedge funds have recently modified their holdings of the company. Rakuten Securities Inc. raised its position in 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 during the last quarter. Parallel Advisors LLC grew its holdings in shares of SiTime by 26.2% during the first quarter. Parallel Advisors LLC now owns 77 shares of the company's stock worth $27,000 after purchasing an additional 16 shares during the last quarter. Larson Financial Group LLC increased 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 valued at $30,000 after buying an additional 96 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of SiTime in the fourth quarter valued at approximately $33,000. Finally, Danske Bank A S bought a new position in SiTime in the 4th quarter valued at approximately $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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