Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 9.6% – Should You Sell?

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price fell 9.6% during mid-day trading on Monday . The company traded as low as $247.51 and last traded at $244.7950. 141,806 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 831,525 shares. The stock had previously closed at $270.90.

Wall Street Analysts Forecast Growth

SIMO has been the subject of several recent analyst reports. Zacks Research upgraded Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. Roth Capital reiterated a “buy” rating and set a $250.00 price objective on shares of Silicon Motion Technology in a report on Wednesday, April 29th. Wedbush raised their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a research report on Monday, June 22nd. Susquehanna boosted their target price on shares of Silicon Motion Technology from $175.00 to $275.00 and gave the company a “positive” rating in a report on Thursday, April 30th. Finally, Craig Hallum reaffirmed a “buy” rating and set a $250.00 price target on shares of Silicon Motion Technology in a research report on Thursday, April 30th. One equities research 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 stock. According to MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $246.43.

Silicon Motion Technology Stock Down 10.0%

The company has a 50 day simple moving average of $290.99 and a 200 day simple moving average of $192.86. The company has a market capitalization of $8.27 billion, a price-to-earnings ratio of 48.72, a price-to-earnings-growth ratio of 0.60 and a beta of 1.70.

Silicon Motion Technology (NASDAQ:SIMO) last released 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. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The business had revenue of $342.11 million for the quarter, compared to analyst estimates of $299.53 million. During the same period in the previous year, the company posted $0.60 EPS. The company’s revenue was up 105.5% compared to the same quarter last year. On average, research analysts forecast that Silicon Motion Technology Corporation will post 8.48 EPS for the current fiscal year.

Insider Activity at Silicon Motion Technology

In related news, Director Kuan-Ming Lin sold 2,000 shares of the firm’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 transaction, the director owned 8,500 shares in the company, valued at approximately $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total transaction of $328,000.00. Following the transaction, the director directly owned 7,500 shares in the company, valued at approximately $2,460,000. This trade represents a 11.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 4,000 shares of company stock worth $1,239,250 in the last 90 days. 5.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Silicon Motion Technology

Several hedge funds and other institutional investors have recently made changes to their positions in SIMO. Legacy Wealth Asset Management LLC increased its holdings in Silicon Motion Technology by 92.3% in the 2nd quarter. Legacy Wealth Asset Management LLC now owns 4,496 shares of the semiconductor producer’s stock valued at $1,499,000 after purchasing an additional 2,158 shares in the last quarter. UNICOM Systems Inc. acquired a new position in shares of Silicon Motion Technology during the second quarter worth about $13,733,000. Strategic Investment Solutions Inc. IL purchased a new stake in shares of Silicon Motion Technology in the second quarter worth about $88,000. Foster Group Inc. purchased a new stake in shares of Silicon Motion Technology in the second quarter worth about $307,000. Finally, Mirador Capital Partners LP acquired a new stake in shares of Silicon Motion Technology in the second quarter valued at about $2,908,000. Institutional investors and hedge funds 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.