SiTime (NASDAQ:SITM) Trading 9.1% Higher – Should You Buy?

SiTime Corporation (NASDAQ:SITM) rose 9.1% during mid-day trading on Monday . The stock traded as high as $362.00 and last traded at $354.8950. Approximately 70,725 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 406,922 shares. The stock had previously closed at $325.32.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on SITM shares. Stifel Nicolaus set a $450.00 price objective on SiTime in a research note on Thursday, February 5th. Raymond James Financial reissued an “outperform” rating on shares of SiTime in a report on Tuesday, December 2nd. Barclays set a $400.00 price target on shares of SiTime in a research report on Thursday, February 5th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SiTime in a report on Thursday, January 22nd. Finally, 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 objective on the stock. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $409.38.

SiTime Stock Performance

The stock has a market capitalization of $9.24 billion, a price-to-earnings ratio of -194.04 and a beta of 2.53. The company’s 50 day moving average is $375.92 and its 200 day moving average is $332.36.

SiTime (NASDAQ:SITM) last released its quarterly earnings data on Wednesday, February 4th. The company reported $1.53 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.33. The company had revenue of $113.29 million during the quarter, compared to the consensus estimate of $101.91 million. SiTime had a negative net margin of 13.13% and a negative return on equity of 2.06%. The firm’s revenue for the quarter was up 66.3% compared to the same quarter last year. During the same period last year, the firm earned $0.48 EPS. On average, equities research analysts anticipate that SiTime Corporation will post -2.44 earnings per share for the current fiscal year.

Insider Buying and Selling at SiTime

In other SiTime news, Director Akira Takata sold 3,500 shares of the company’s stock in a transaction dated 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 transaction, the director directly owned 13,734 shares in the company, valued at approximately $5,929,379.82. This represents a 20.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Rajesh Vashist sold 2,000 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $369.20, for a total transaction of $738,400.00. Following the completion of the transaction, the chief executive officer owned 431,609 shares in the company, valued at $159,350,042.80. This represents a 0.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 23,263 shares of company stock worth $9,851,457 over the last quarter. Corporate insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in SiTime by 2.2% in the 4th quarter. Vanguard Group Inc. now owns 2,825,402 shares of the company’s stock valued at $997,904,000 after buying an additional 61,336 shares during the last quarter. Invesco Ltd. grew its holdings in shares of SiTime by 1.8% in the 3rd quarter. Invesco Ltd. now owns 1,037,305 shares of the company’s stock valued at $312,550,000 after acquiring an additional 18,165 shares in the last quarter. State Street Corp increased its position in shares of SiTime by 3.7% in the second quarter. State Street Corp now owns 911,280 shares of the company’s stock valued at $194,176,000 after acquiring an additional 32,178 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of SiTime by 22.0% in the second quarter. Ameriprise Financial Inc. now owns 736,281 shares of the company’s stock valued at $156,887,000 after acquiring an additional 132,948 shares during the last quarter. Finally, Whale Rock Capital Management LLC raised its holdings in SiTime by 45.4% during the fourth quarter. Whale Rock Capital Management LLC now owns 698,539 shares of the company’s stock worth $246,717,000 after acquiring an additional 218,038 shares in the last quarter. 84.31% of the stock is owned by institutional investors and hedge funds.

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.