SiTime (NASDAQ:SITM) Shares Gap Up - Here's Why

Key Points

• SiTime Corporation shares gapped up from a previous close of $190.16 to open at $198.10, closing last at $194.84, with a volume of 34,593 shares traded.
• Analysts have mixed views on SiTime, with Stifel Nicolaus upgrading their price target from $210 to $230 and giving a "buy" rating, while Barclays increased theirs from $135 to $180 but maintained an "underweight" rating.
• The company's latest quarterly earnings surpassed expectations, reporting $0.26 EPS on revenue of $60.31 million, reflecting a year-over-year growth of 82.7%.

SiTime Corporation (NASDAQ:SITM - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $190.16, but opened at $198.10. SiTime shares last traded at $194.84, with a volume of 34,593 shares.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on SITM shares. Stifel Nicolaus boosted their price objective on shares of SiTime from $210.00 to $230.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Barclays boosted their price objective on SiTime from $135.00 to $180.00 and gave the stock an "underweight" rating in a research report on Wednesday, June 11th. One research analyst has rated the stock with a sell rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $228.00.

SiTime Stock Up 3.6%

The stock's 50-day moving average price is $208.60 and its 200 day moving average price is $186.82. The firm has a market cap of $4.67 billion, a price-to-earnings ratio of -51.72 and a beta of 2.20.

SiTime (NASDAQ:SITM - Get Free Report) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.11 by $0.15. The firm had revenue of $60.31 million during the quarter, compared to analysts' expectations of $54.01 million. SiTime had a negative return on equity of 9.43% and a negative net margin of 38.60%. The company's revenue for the quarter was up 82.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.08) EPS. On average, research analysts predict that SiTime Corporation will post -2.44 EPS for the current year.

Insider Buying and Selling

In related news, CEO Rajesh Vashist sold 20,000 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $210.65, for a total value of $4,213,000.00. Following the completion of the transaction, the chief executive officer owned 490,320 shares of the company's stock, valued at $103,285,908. This represents a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Vincent P. Pangrazio sold 5,026 shares of the stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $204.55, for a total transaction of $1,028,068.30. Following the completion of the transaction, the insider directly owned 64,842 shares of the company's stock, valued at $13,263,431.10. This trade represents a 7.19% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 65,818 shares of company stock worth $13,601,258. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On SiTime

A number of hedge funds have recently modified their holdings of SITM. Alliancebernstein L.P. increased its holdings in SiTime by 2,016.8% during the 1st quarter. Alliancebernstein L.P. now owns 443,227 shares of the company's stock valued at $67,756,000 after purchasing an additional 422,288 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of SiTime by 27,559.1% in the first quarter. GAMMA Investing LLC now owns 261,102 shares of the company's stock valued at $39,915,000 after buying an additional 260,158 shares in the last quarter. Eventide Asset Management LLC raised its stake in shares of SiTime by 5,015.9% in the first quarter. Eventide Asset Management LLC now owns 166,214 shares of the company's stock worth $25,408,000 after acquiring an additional 162,965 shares during the last quarter. Neuberger Berman Group LLC lifted its position in shares of SiTime by 360.8% during the first quarter. Neuberger Berman Group LLC now owns 135,211 shares of the company's stock worth $20,670,000 after purchasing an additional 105,868 shares in the last quarter. Finally, Invesco Ltd. grew its stake in shares of SiTime by 11.0% during the fourth quarter. Invesco Ltd. now owns 983,175 shares of the company's stock valued at $210,921,000 after purchasing an additional 97,062 shares during the last quarter. 84.31% of the stock is owned by institutional investors and hedge funds.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense.

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