Wall Street Zen Downgrades SiTime (NASDAQ:SITM) to Hold

Key Points

• Wall Street Zen downgraded SiTime (SITM) from a "buy" to a "hold" in a report released Saturday.
• SiTime beat estimates in its latest quarter with EPS $1.53 vs. $1.20 and revenue of $113.3M (up 66.3% year-over-year), but the company still reported a negative net margin (-13.13%) and negative return on equity.
• Analyst sentiment remains largely positive overall—seven Buys, one Hold and one Sell—yielding a consensus rating of "Moderate Buy" and a consensus price target of $409.38, while the stock has recently traded around $420.

SiTime (NASDAQ:SITM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts also recently issued reports on SITM. The Goldman Sachs Group began coverage on shares of SiTime in a research report on Monday, December 15th. They issued a "buy" rating and a $420.00 price objective for the company. Needham & Company LLC upped their price objective on shares of SiTime from $400.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, February 5th. Weiss Ratings reissued a "sell (d-)" rating on shares of SiTime in a research report on Thursday, January 22nd. Barclays set a $400.00 price target on shares of SiTime in a research note on Thursday, February 5th. Finally, Roth Mkm restated a "buy" rating and set a $450.00 price target on shares of SiTime in a research note on Thursday, February 5th. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $409.38.

SiTime Stock Performance

SiTime stock opened at $420.32 on Friday. SiTime has a fifty-two week low of $123.59 and a fifty-two week high of $446.95. The firm's 50-day simple moving average is $375.90 and its 200 day simple moving average is $340.87. The stock has a market cap of $11.05 billion, a PE ratio of -230.95 and a beta of 2.57.

SiTime (NASDAQ:SITM - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.33. SiTime had a negative net margin of 13.13% and a negative return on equity of 2.06%. The business had revenue of $113.29 million during the quarter, compared to the consensus estimate of $101.91 million. During the same period in the prior year, the firm posted $0.48 EPS. The firm's quarterly revenue was up 66.3% compared to the same quarter last year. As a group, analysts predict that SiTime will post -2.44 EPS for the current fiscal year.

Insider Activity

In other news, insider Fariborz Assaderaghi sold 4,984 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $406.45, for a total transaction of $2,025,746.80. Following the sale, the insider owned 89,194 shares in the company, valued at approximately $36,252,901.30. This trade represents a 5.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Akira Takata sold 3,500 shares of the firm's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $431.73, for a total transaction of $1,511,055.00. Following the sale, the director owned 13,734 shares in the company, valued at approximately $5,929,379.82. This trade represents a 20.31% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 22,512 shares of company stock worth $9,581,432. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On SiTime

Several institutional investors and hedge funds have recently made changes to their positions in the business. Rockefeller Capital Management L.P. grew its holdings in shares of SiTime by 1,368.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 3,259 shares of the company's stock valued at $1,151,000 after purchasing an additional 3,037 shares during the last quarter. Corient Private Wealth LLC grew its holdings in shares of SiTime by 5.9% during the 4th quarter. Corient Private Wealth LLC now owns 703 shares of the company's stock valued at $249,000 after purchasing an additional 39 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in shares of SiTime during the 4th quarter valued at $63,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of SiTime by 2,164.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 137,878 shares of the company's stock valued at $48,698,000 after purchasing an additional 131,789 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its holdings in shares of SiTime by 18.0% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 1,036 shares of the company's stock valued at $366,000 after purchasing an additional 158 shares during the last quarter. Institutional investors 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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