SiTime (NASDAQ:SITM) Trading Down 7.4% - Time to Sell?

Key Points

• SiTime Corporation shares experienced a significant decline of 7.4%, trading down to $294.52 from a previous close of $318.05, with a notable decrease in trading volume.
• Analysts have provided mixed ratings, with five giving a Buy rating and one a Sell rating; the consensus target price stands at $258.33.
• Institutional investors have shown increased interest, with Texas Permanent School Fund Corp growing its holdings by 202.1% in the second quarter, indicating strong institutional confidence in SiTime.

SiTime Corporation (NASDAQ:SITM - Get Free Report) shares traded down 7.4% during mid-day trading on Wednesday . The stock traded as low as $299.51 and last traded at $294.52. 239,940 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 335,827 shares. The stock had previously closed at $318.05.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Raymond James Financial reissued an "outperform" rating and set a $270.00 price target (up previously from $250.00) on shares of SiTime in a report on Friday, August 29th. Barclays increased their target price on shares of SiTime from $180.00 to $220.00 and gave the stock an "underweight" rating in a report on Thursday, August 7th. UBS Group assumed coverage on shares of SiTime in a research report on Thursday, August 14th. They set a "buy" rating and a $260.00 price objective for the company. Finally, Stifel Nicolaus boosted their target price on shares of SiTime from $230.00 to $320.00 and gave the stock a "buy" rating in a research note on Thursday, September 18th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $258.33.

SiTime Stock Down 7.6%

The company has a market cap of $7.64 billion, a price-to-earnings ratio of -84.08 and a beta of 2.18. The firm has a 50 day moving average price of $230.53 and a two-hundred day moving average price of $198.25.

SiTime (NASDAQ:SITM - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.29 by $0.18. SiTime had a negative return on equity of 7.54% and a negative net margin of 32.15%.The business had revenue of $69.49 million for the quarter, compared to analysts' expectations of $64.66 million. During the same period in the prior year, the business posted $0.12 earnings per share. The firm's revenue was up 58.3% on a year-over-year basis. On average, equities analysts expect that SiTime Corporation will post -2.44 earnings per share for the current year.

Insider Activity

In related news, insider Samsheer Ahamad sold 6,000 shares of the company's stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $250.00, for a total transaction of $1,500,000.00. Following the sale, the insider owned 61,888 shares in the company, valued at $15,472,000. This represents a 8.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Fariborz Assaderaghi sold 3,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $234.00, for a total value of $702,000.00. Following the completion of the transaction, the insider directly owned 93,433 shares in the company, valued at approximately $21,863,322. This trade represents a 3.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 30,367 shares of company stock worth $7,258,713 in the last three months. Corporate insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Texas Permanent School Fund Corp grew its holdings in SiTime by 202.1% in the second quarter. Texas Permanent School Fund Corp now owns 18,591 shares of the company's stock worth $3,961,000 after purchasing an additional 12,437 shares during the period. Osaic Holdings Inc. increased its position in SiTime by 3,957.0% in the 2nd quarter. Osaic Holdings Inc. now owns 12,252 shares of the company's stock valued at $2,609,000 after buying an additional 11,950 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in SiTime by 9.4% during the 2nd quarter. Thrivent Financial for Lutherans now owns 15,359 shares of the company's stock worth $3,273,000 after buying an additional 1,319 shares during the period. State of Wyoming bought a new position in SiTime in the second quarter worth approximately $58,000. Finally, Castleark Management LLC acquired a new stake in SiTime in the second quarter valued at approximately $6,682,000. 84.31% of the stock is owned by institutional investors.

SiTime Company Profile

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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