Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up – Should You Buy?

Silicon Motion Technology Corporation (NASDAQ:SIMO) gapped up prior to trading on Thursday . The stock had previously closed at $321.66, but opened at $344.75. Silicon Motion Technology shares last traded at $329.7190, with a volume of 174,671 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Weiss Ratings cut shares of Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Roth Mkm restated a “buy” rating and issued a $250.00 price objective on shares of Silicon Motion Technology in a research report on Wednesday, April 29th. JPMorgan Chase & Co. upped their price objective on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Wedbush upped their price objective on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a research note on Monday. Finally, Susquehanna increased their target price on shares of Silicon Motion Technology from $175.00 to $275.00 and gave the stock a “positive” rating in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $246.43.

Silicon Motion Technology Price Performance

The stock has a market capitalization of $11.07 billion, a PE ratio of 64.91, a PEG ratio of 0.71 and a beta of 1.72. The company has a 50 day moving average price of $244.77 and a 200-day moving average price of $160.37.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 EPS for the quarter, topping analysts’ consensus estimates of $1.31 by $0.27. The company had revenue of $342.11 million during the quarter, compared to analyst estimates of $299.53 million. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The firm’s revenue was up 105.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.60 earnings per share. As a group, equities analysts anticipate that Silicon Motion Technology Corporation will post 8.35 earnings per share for the current year.

Insider Activity

In other Silicon Motion Technology news, Director Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following the sale, the director directly owned 8,500 shares of the company’s stock, valued at approximately $2,592,500. The trade was a 19.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Han-Ping Shieh sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the transaction, the director owned 7,500 shares in the company, valued at $2,460,000. This trade represents a 11.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 4,000 shares of company stock valued at $1,239,250. Corporate insiders own 5.34% of the company’s stock.

Institutional Investors Weigh In On Silicon Motion Technology

Hedge funds have recently made changes to their positions in the company. Pacer Advisors Inc. raised its holdings in Silicon Motion Technology by 25.9% in the first quarter. Pacer Advisors Inc. now owns 4,226 shares of the semiconductor producer’s stock worth $475,000 after purchasing an additional 869 shares in the last quarter. Bank of America Corp DE grew its position in shares of Silicon Motion Technology by 33.2% in the 1st quarter. Bank of America Corp DE now owns 244,387 shares of the semiconductor producer’s stock worth $27,442,000 after buying an additional 60,970 shares during the period. EverSource Wealth Advisors LLC grew its position in shares of Silicon Motion Technology by 78.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,159 shares of the semiconductor producer’s stock worth $130,000 after buying an additional 511 shares during the period. Royal Bank of Canada increased its stake in shares of Silicon Motion Technology by 4.5% in the 1st quarter. Royal Bank of Canada now owns 49,037 shares of the semiconductor producer’s stock worth $5,506,000 after acquiring an additional 2,110 shares in the last quarter. Finally, Hawk Ridge Capital Management LP increased its stake in shares of Silicon Motion Technology by 48.9% in the 1st quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock worth $131,752,000 after acquiring an additional 385,568 shares in the last quarter. 78.02% of the stock is currently owned by institutional investors.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.