Silicon Motion Technology (NASDAQ:SIMO) Trading Down 8.6% – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO) dropped 8.6% on Friday . The stock traded as low as $295.00 and last traded at $297.40. 273,038 shares were traded during trading, a decline of 68% from the average session volume of 847,579 shares. The stock had previously closed at $325.26.

Analyst Ratings Changes

SIMO has been the subject of a number of research analyst reports. Zacks Research upgraded Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. Wedbush upped their price target on Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a research report on Monday. Craig Hallum reaffirmed a “buy” rating and issued a $250.00 price target on shares of Silicon Motion Technology in a report on Thursday, April 30th. Wall Street Zen raised shares of Silicon Motion Technology from a “buy” rating to a “strong-buy” rating in a research note on Sunday, May 3rd. Finally, Weiss Ratings downgraded shares of Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $246.43.

Silicon Motion Technology Stock Down 5.5%

The company has a market cap of $10.42 billion, a P/E ratio of 61.27, a price-to-earnings-growth ratio of 0.72 and a beta of 1.72. The stock has a 50 day moving average price of $248.67 and a two-hundred day moving average price of $162.01.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.27. The business had revenue of $342.11 million for the quarter, compared to the consensus estimate 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 quarterly revenue was up 105.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.60 earnings per share. Equities analysts anticipate that Silicon Motion Technology Corporation will post 8.35 EPS for the current year.

Insider Activity

In related news, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the sale, the director owned 7,500 shares in the company, valued at $2,460,000. This trade represents a 11.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the sale, the director owned 8,500 shares of the company’s stock, valued at $2,592,500. The trade was a 19.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 4,000 shares of company stock valued at $1,239,250. 5.34% of the stock is owned by insiders.

Institutional Trading of Silicon Motion Technology

A number of hedge funds have recently bought and sold shares of the stock. Brown Brothers Harriman & Co. purchased a new stake in shares of Silicon Motion Technology during the third quarter worth approximately $26,000. WealthCollab LLC grew its stake in Silicon Motion Technology by 77.4% during the 4th quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer’s stock valued at $32,000 after purchasing an additional 151 shares in the last quarter. Arax Advisory Partners increased its stake in shares of Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock worth $41,000 after buying an additional 307 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Silicon Motion Technology by 169.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock worth $44,000 after acquiring an additional 366 shares in the last quarter. Finally, MeadowBrook Investment Advisors LLC acquired a new stake in Silicon Motion Technology during the fourth quarter worth about $71,000. Hedge funds and other institutional investors own 78.02% of the company’s stock.

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.