Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 10.6% – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s share price fell 10.6% during trading on Thursday. The stock traded as low as $200.25 and last traded at $198.7090. Approximately 247,947 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 869,864 shares. The stock had previously closed at $222.30.

Analyst Ratings Changes

Several research analysts have recently issued reports on SIMO shares. Weiss Ratings downgraded Silicon Motion Technology from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, October 16th. B. Riley Financial raised their price objective on shares of Silicon Motion Technology from $312.00 to $350.00 and gave the company a “buy” rating in a report on Friday, July 31st. Roth Capital reiterated a “buy” rating and set a $350.00 target price on shares of Silicon Motion Technology in a research report on Thursday, July 30th. Wall Street Zen lowered shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Finally, Zacks Research downgraded shares of Silicon Motion Technology from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $341.43.

Silicon Motion Technology Stock Down 15.4%

The company has a market cap of $6.37 billion, a price-to-earnings ratio of 22.04, a PEG ratio of 0.38 and a beta of 1.69. The firm has a 50 day moving average price of $256.16 and a two-hundred day moving average price of $251.19.

Silicon Motion Technology (NASDAQ:SIMO) last announced its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 EPS for the quarter, beating the consensus estimate of $2.13 by $0.30. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%. The business had revenue of $451.00 million for the quarter, compared to analysts’ expectations of $403.41 million. During the same period in the prior year, the business posted $0.69 earnings per share. The firm’s revenue was up 127.0% on a year-over-year basis. On average, equities analysts expect that Silicon Motion Technology Corporation will post 10.60 earnings per share for the current year.

Silicon Motion Technology Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be given a $0.5750 dividend. This is an increase from Silicon Motion Technology’s previous quarterly dividend of $0.50. The ex-dividend date is Thursday, November 5th. This represents a $2.30 dividend on an annualized basis and a dividend yield of 1.2%. Silicon Motion Technology’s dividend payout ratio is presently 26.96%.

Institutional Investors Weigh In On Silicon Motion Technology

Institutional investors have recently modified their holdings of the company. Assetmark Inc. increased its position in shares of Silicon Motion Technology by 2.3% during the first quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer’s stock worth $316,000 after buying an additional 63 shares during the period. Cooper Investors PTY Ltd. acquired a new position in Silicon Motion Technology in the second quarter valued at $34,000. Stronghold Wealth Management L.L.C. lifted its holdings in Silicon Motion Technology by 17.8% in the third quarter. Stronghold Wealth Management L.L.C. now owns 740 shares of the semiconductor producer’s stock valued at $207,000 after buying an additional 112 shares during the period. Hardy Reed LLC boosted its position in Silicon Motion Technology by 3.4% during the first quarter. Hardy Reed LLC now owns 5,010 shares of the semiconductor producer’s stock valued at $563,000 after acquiring an additional 166 shares during the last quarter. Finally, Allworth Financial LP boosted its position in Silicon Motion Technology by 26.4% during the second quarter. Allworth Financial LP now owns 834 shares of the semiconductor producer’s stock valued at $278,000 after acquiring an additional 174 shares during the last quarter. 78.02% of the stock is owned by institutional investors.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company’s product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.