SiTime (NASDAQ:SITM) Trading Down 10.8% - Here's What Happened

Key Points

• SiTime shares fell 10.8% on Tuesday, trading as low as $804.93 on lighter-than-average volume after closing at $901.48 the prior session.
• Despite the stock drop, analyst sentiment remains bullish: multiple firms raised price targets or reiterated Buy ratings, and the stock carries an average Moderate Buy rating with a $661.88 target.
• The company recently reported strong quarterly results, with EPS of $1.44 beating estimates and revenue rising 88.3% year over year to $113.57 million, while institutional investors continue to hold a large majority of shares.

Shares of SiTime Corporation (NASDAQ:SITM - Get Free Report) were down 10.8% on Tuesday . The stock traded as low as $804.93 and last traded at $803.7160. Approximately 295,310 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 412,949 shares. The stock had previously closed at $901.48.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on SITM shares. Roth Mkm restated a "buy" rating and issued a $900.00 price target on shares of SiTime in a research note on Thursday, May 7th. Stifel Nicolaus upped their price target on SiTime from $450.00 to $500.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. Needham & Company LLC upped their price target on SiTime from $450.00 to $850.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Wall Street Zen upgraded SiTime from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Barclays upgraded SiTime from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $400.00 to $850.00 in a research note on Thursday, May 7th. Eight equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $661.88.

SiTime Stock Performance

The company has a fifty day moving average price of $440.90 and a 200-day moving average price of $378.76. The firm has a market capitalization of $21.93 billion, a PE ratio of -822.12 and a beta of 2.91.

SiTime (NASDAQ:SITM - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $1.44 EPS for the quarter, beating the consensus estimate 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 company had revenue of $113.57 million for the quarter, compared to the consensus estimate of $103.51 million. During the same quarter in the prior year, the company posted $0.26 EPS. SiTime's quarterly revenue was up 88.3% on a year-over-year basis. On average, equities analysts predict that SiTime Corporation will post 1.31 earnings per share for the current year.

Insider Transactions at SiTime

In related news, insider Samsheer Ahamad sold 9,100 shares of the firm's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $441.47, for a total transaction of $4,017,377.00. Following the sale, the insider owned 52,938 shares of the company's stock, valued at $23,370,538.86. This trade represents a 14.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Raman Chitkara sold 501 shares of SiTime stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $425.03, for a total value of $212,940.03. Following the transaction, the director owned 21,508 shares in the company, valued at approximately $9,141,545.24. The trade was a 2.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,178 shares of company stock worth $9,563,239 over the last quarter. 1.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Emerald Mutual Fund Advisers Trust raised its position in shares of SiTime by 10.6% in the 3rd quarter. Emerald Mutual Fund Advisers Trust now owns 98,689 shares of the company's stock worth $29,736,000 after buying an additional 9,492 shares during the period. Federated Hermes Inc. boosted its stake in SiTime by 25.0% in the third quarter. Federated Hermes Inc. now owns 125,000 shares of the company's stock valued at $37,664,000 after acquiring an additional 25,000 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in SiTime by 21.2% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 44,363 shares of the company's stock valued at $13,367,000 after acquiring an additional 7,772 shares during the period. Teachers Retirement System of The State of Kentucky boosted its stake in SiTime by 145.9% in the third quarter. Teachers Retirement System of The State of Kentucky now owns 12,215 shares of the company's stock valued at $3,681,000 after acquiring an additional 7,247 shares during the period. Finally, Cibc World Market Inc. acquired a new position in SiTime in the third quarter valued at approximately $2,259,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.