SiTime (NASDAQ:SITM) Trading Down 8% – Should You Sell?

Shares of SiTime Corporation (NASDAQ:SITM) fell 8% during trading on Monday . The company traded as low as $343.85 and last traded at $340.2620. 127,980 shares changed hands during trading, a decline of 39% from the average session volume of 210,360 shares. The stock had previously closed at $369.96.

Wall Street Analyst Weigh In

SITM has been the topic of several analyst reports. The Goldman Sachs Group initiated coverage on shares of SiTime in a research note on Monday, December 15th. They set a “buy” rating and a $420.00 price target on the stock. Barclays raised their target price on SiTime from $220.00 to $260.00 and gave the stock an “underweight” rating in a report on Thursday, November 6th. Loop Capital initiated coverage on SiTime in a report on Friday, November 21st. They set a “buy” rating and a $350.00 price target for the company. Needham & Company LLC raised their price objective on SiTime from $250.00 to $360.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Finally, Roth Capital reaffirmed a “buy” rating and set a $350.00 price objective on shares of SiTime in a research report on Thursday, November 6th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $343.13.

SiTime Stock Performance

The company has a market cap of $8.69 billion, a P/E ratio of -112.51 and a beta of 2.49. The firm’s fifty day moving average is $323.54 and its two-hundred day moving average is $270.98.

SiTime (NASDAQ:SITM) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.71 by $0.16. The business had revenue of $83.57 million for the quarter, compared to analysts’ expectations of $78.08 million. SiTime had a negative return on equity of 5.69% and a negative net margin of 25.18%.The business’s quarterly revenue was up 44.8% on a year-over-year basis. During the same period last year, the firm earned $0.40 earnings per share. On average, equities research analysts expect that SiTime Corporation will post -2.44 EPS for the current year.

Insider Buying and Selling

In other news, insider Samsheer Ahamad sold 4,000 shares of SiTime stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $291.10, for a total transaction of $1,164,400.00. Following the sale, the insider owned 51,711 shares in the company, valued at $15,053,072.10. This trade represents a 7.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Fariborz Assaderaghi sold 1,500 shares of the business’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $291.58, for a total transaction of $437,370.00. Following the completion of the transaction, the insider directly owned 84,815 shares in the company, valued at $24,730,357.70. This trade represents a 1.74% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 19,500 shares of company stock valued at $6,053,310. Corporate insiders own 2.30% of the company’s stock.

Institutional Trading of SiTime

A number of institutional investors and hedge funds have recently bought and sold shares of SITM. Vanguard Group Inc. increased its holdings in shares of SiTime by 4.7% in the third quarter. Vanguard Group Inc. now owns 2,764,066 shares of the company’s stock worth $832,841,000 after purchasing an additional 123,287 shares during the last quarter. Invesco Ltd. grew its holdings in SiTime by 1.8% during the 3rd quarter. Invesco Ltd. now owns 1,037,305 shares of the company’s stock valued at $312,550,000 after buying an additional 18,165 shares in the last quarter. State Street Corp grew its holdings in SiTime by 3.7% during the 2nd quarter. State Street Corp now owns 911,280 shares of the company’s stock valued at $194,176,000 after buying an additional 32,178 shares in the last quarter. Ameriprise Financial Inc. increased its stake in SiTime by 22.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 736,281 shares of the company’s stock worth $156,887,000 after acquiring an additional 132,948 shares during the last quarter. Finally, Wellington Management Group LLP raised its holdings in shares of SiTime by 36.8% during the 3rd quarter. Wellington Management Group LLP now owns 537,741 shares of the company’s stock worth $162,027,000 after acquiring an additional 144,671 shares in the last quarter. 84.31% of the stock is currently owned by institutional investors.

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.