Silicon Motion Technology Corp. (NASDAQ:SIMO) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Silicon Motion has a decent earnings surprise history, with three strong earnings beats over the four trailing quarters. The company raised its revenue guidance for the full year, driven by surging demand for SSD controllers. Going forward, Silicon Motion believes strong momentum of its embedded storage products markets will continue to prosper, fuelled by present industry trends. This apart, the previously completed Shannon acquisition is boosting enterprise and industrial SSD solutions sales – especially in Chinese markets – thereby, positioning it well for long-term growth. Strategic product launches and strong commitment toward R&D activities is also expected to contribute to the company’s strength. However, escalating operating expenses, intensifying competition in USB flash drive controller markets and overall sluggishness in global wireless & broader semiconductor markets remain as concerns for Silicon Motion.”

A number of other brokerages have also weighed in on SIMO. B. Riley reaffirmed a “buy” rating and issued a $64.50 target price on shares of Silicon Motion Technology Corp. in a research note on Tuesday, July 19th. Brean Capital reaffirmed a “buy” rating on shares of Silicon Motion Technology Corp. in a research note on Monday, July 18th. Nomura reaffirmed a “buy” rating and issued a $62.00 target price (up from $46.00) on shares of Silicon Motion Technology Corp. in a research note on Tuesday, July 12th. Needham & Company LLC reaffirmed a “buy” rating and issued a $60.00 target price on shares of Silicon Motion Technology Corp. in a research note on Wednesday, September 7th. Finally, Susquehanna reaffirmed a “positive” rating and issued a $56.00 target price (up from $48.00) on shares of Silicon Motion Technology Corp. in a research note on Wednesday, July 6th. Three research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $50.96.

Analyst Recommendations for Silicon Motion Technology Corp. (NASDAQ:SIMO)

Shares of Silicon Motion Technology Corp. (NASDAQ:SIMO) traded up 0.42% during midday trading on Tuesday, hitting $50.38. The stock had a trading volume of 284,746 shares. The firm has a market capitalization of $1.78 billion, a PE ratio of 22.44 and a beta of 1.11. The company’s 50 day moving average price is $52.59 and its 200-day moving average price is $45.22. Silicon Motion Technology Corp. has a 1-year low of $25.23 and a 1-year high of $56.25.

Silicon Motion Technology Corp. (NASDAQ:SIMO) last announced its quarterly earnings results on Thursday, July 21st. The company reported $0.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.10. Silicon Motion Technology Corp. had a net margin of 18.29% and a return on equity of 22.62%. Equities analysts predict that Silicon Motion Technology Corp. will post $3.26 earnings per share for the current year.

Large investors have recently modified their holdings of the stock. Genesee Valley Trust Co. boosted its stake in shares of Silicon Motion Technology Corp. by 2.1% in the second quarter. Genesee Valley Trust Co. now owns 6,840 shares of the company’s stock worth $327,000 after buying an additional 140 shares during the last quarter. State Street Corp boosted its stake in shares of Silicon Motion Technology Corp. by 0.5% in the first quarter. State Street Corp now owns 42,744 shares of the company’s stock worth $1,659,000 after buying an additional 230 shares during the last quarter. Commonwealth Equity Services Inc boosted its stake in shares of Silicon Motion Technology Corp. by 3.2% in the second quarter. Commonwealth Equity Services Inc now owns 9,782 shares of the company’s stock worth $468,000 after buying an additional 301 shares during the last quarter. AMP Capital Investors Ltd boosted its stake in shares of Silicon Motion Technology Corp. by 0.7% in the first quarter. AMP Capital Investors Ltd now owns 119,411 shares of the company’s stock worth $4,763,000 after buying an additional 869 shares during the last quarter. Finally, Royal Bank of Canada boosted its stake in shares of Silicon Motion Technology Corp. by 23.8% in the second quarter. Royal Bank of Canada now owns 5,595 shares of the company’s stock worth $267,000 after buying an additional 1,074 shares during the last quarter. 69.03% of the stock is currently owned by institutional investors.

Silicon Motion Technology Corp. Company Profile

Silicon Motion Technology Corporation (SMTC) is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. For the mobile storage market, the Company’s products are microcontrollers used in solid state storage devices, such as Solid State Drives (SSDs), Embedded Multimedia Cards (eMMCs) and other embedded flash applications, as well as removable storage products.

5 Day Chart for NASDAQ:SIMO

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