Silicon Motion Technology (NASDAQ:SIMO) Trading 4.2% Higher – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price rose 4.2% during mid-day trading on Wednesday . The stock traded as high as $253.99 and last traded at $252.06. Approximately 156,380 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 905,082 shares. The stock had previously closed at $241.83.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on SIMO shares. Weiss Ratings raised Silicon Motion Technology from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, August 17th. Roth Capital reaffirmed a “buy” rating and set a $350.00 price target on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Wall Street Zen downgraded shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Needham & Company LLC raised their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Finally, Wedbush boosted their price objective on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday, June 22nd. One research analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $341.43.

Silicon Motion Technology Stock Down 3.1%

The firm has a fifty day moving average of $277.37 and a 200-day moving average of $215.21. The stock has a market capitalization of $8.65 billion, a price-to-earnings ratio of 29.90, a PEG ratio of 0.46 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.13 by $0.30. The business had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%.The business’s revenue was up 127.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.69 EPS. As a group, research analysts forecast that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the transaction, the director directly owned 8,500 shares of the company’s stock, valued at $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total value 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 represents 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 ninety days, insiders sold 4,000 shares of company stock worth $1,239,250. 5.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Wolf Hill Capital Management LP purchased a new position in Silicon Motion Technology in the 4th quarter valued at about $53,893,000. Hawk Ridge Capital Management LP grew its holdings in shares of Silicon Motion Technology by 111.3% during the fourth quarter. Hawk Ridge Capital Management LP now owns 787,747 shares of the semiconductor producer’s stock worth $73,024,000 after buying an additional 415,000 shares in the last quarter. Man Group plc raised its position in shares of Silicon Motion Technology by 820.7% in the fourth quarter. Man Group plc now owns 381,048 shares of the semiconductor producer’s stock valued at $35,323,000 after buying an additional 339,663 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Silicon Motion Technology by 112.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer’s stock valued at $47,802,000 after buying an additional 225,221 shares during the last quarter. Finally, AIGH Capital Management LLC purchased a new position in shares of Silicon Motion Technology during the first quarter valued at approximately $22,458,000. 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.