Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down – Here’s Why

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) gapped down before the market opened on Tuesday. The stock had previously closed at $217.24, but opened at $208.40. Silicon Motion Technology shares last traded at $213.64, with a volume of 48,075 shares.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on SIMO shares. Craig Hallum reissued a “buy” rating and issued a $325.00 target price on shares of Silicon Motion Technology in a report on Friday, July 31st. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. B. Riley Financial raised their price target on Silicon Motion Technology from $312.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Susquehanna raised their price target on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a research note on Friday, July 31st. Finally, Needham & Company LLC lifted their price target on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Silicon Motion Technology has an average rating of “Moderate Buy” and an average price target of $341.43.

Silicon Motion Technology Trading Up 4.0%

The stock has a market cap of $7.54 billion, a price-to-earnings ratio of 26.06, a PEG ratio of 0.38 and a beta of 1.69. The stock’s 50 day moving average is $256.16 and its two-hundred day moving average is $251.19.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings data 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 company had revenue of $451.00 million for the quarter, compared to the consensus estimate of $403.41 million. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. Silicon Motion Technology’s revenue for the quarter was up 127.0% on a year-over-year basis. During the same period last year, the firm posted $0.69 EPS. On average, sell-side analysts predict that Silicon Motion Technology Corporation will post 10.60 EPS for the current year.

Silicon Motion Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be issued a dividend of $0.5750 per share. This is an increase from Silicon Motion Technology’s previous quarterly dividend of $0.50. This represents a $2.30 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, November 5th. Silicon Motion Technology’s dividend payout ratio is 26.96%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of SIMO. Kornitzer Capital Management Inc. KS acquired a new position in shares of Silicon Motion Technology during the first quarter worth about $4,827,000. Schwartz Investment Counsel Inc. increased its holdings in shares of Silicon Motion Technology by 36.4% in the 1st quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer’s stock valued at $33,687,000 after purchasing an additional 80,000 shares in the last quarter. AIGH Capital Management LLC purchased a new position in shares of Silicon Motion Technology in the 1st quarter valued at about $22,458,000. Calamos Advisors LLC acquired a new stake in shares of Silicon Motion Technology in the first quarter valued at about $2,686,000. Finally, Elevation Point Wealth Partners LLC acquired a new stake in shares of Silicon Motion Technology in the first quarter valued at about $496,000. Institutional investors and hedge funds own 78.02% of the company’s stock.

About Silicon Motion Technology

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.