Silicon Motion Technology (NASDAQ:SIMO) Trading Down 6.9% – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price dropped 6.9% during mid-day trading on Monday . The company traded as low as $301.11 and last traded at $303.8840. Approximately 78,757 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 843,294 shares. The stock had previously closed at $326.35.

Wall Street Analysts Forecast Growth

SIMO has been the subject of several analyst reports. Zacks Research raised Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. Wall Street Zen lowered Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. B. Riley Financial reiterated a “buy” rating on shares of Silicon Motion Technology in a research note on Thursday, April 30th. Wedbush boosted their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a research report on Monday, June 22nd. Finally, Weiss Ratings lowered shares of Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $246.43.

Silicon Motion Technology Stock Up 3.0%

The firm has a 50-day simple moving average of $288.05 and a 200 day simple moving average of $182.50. The company has a market cap of $10.46 billion, a price-to-earnings ratio of 61.31, a price-to-earnings-growth ratio of 0.66 and a beta of 1.70.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings data on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.27. The business had revenue of $342.11 million during 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 company’s revenue was up 105.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.60 earnings per share. As a group, research analysts expect that Silicon Motion Technology Corporation will post 8.48 EPS for the current year.

Insider Buying and Selling at Silicon Motion Technology

In other Silicon Motion Technology news, Director Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction 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 transaction, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the company’s 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 directly owned 7,500 shares of the company’s stock, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 4,000 shares of company stock valued at $1,239,250. 5.34% of the stock is owned by insiders.

Hedge Funds Weigh In On Silicon Motion Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in SIMO. Cooper Investors PTY Ltd. purchased a new stake in Silicon Motion Technology during the 2nd quarter valued at approximately $34,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Silicon Motion Technology in the 2nd quarter valued at approximately $88,000. Brown Brothers Harriman & Co. acquired a new position in shares of Silicon Motion Technology in the third quarter valued at approximately $26,000. WealthCollab LLC increased its holdings in shares of Silicon Motion Technology by 77.4% in the fourth quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer’s stock valued at $32,000 after purchasing an additional 151 shares during the period. Finally, Arax Advisory Partners raised its stake in shares of Silicon Motion Technology by 220.9% during the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock worth $41,000 after purchasing an additional 307 shares during the last quarter. Hedge funds and other institutional investors own 78.02% of the company’s stock.

Silicon Motion Technology Company Profile

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.