Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 13.6% – What’s Next?

Silicon Motion Technology Corporation (NASDAQ:SIMO) traded down 13.6% during mid-day trading on Wednesday. The stock traded as low as $176.89 and last traded at $174.46. Approximately 353,763 shares were traded during trading, a decline of 60% from the average daily volume of 889,294 shares. The stock had previously closed at $201.90.

Analysts Set New Price Targets

SIMO has been the subject of several recent research reports. Roth Capital reiterated a “buy” rating and issued a $350.00 price target on shares of Silicon Motion Technology in a research report on Thursday, July 30th. Wall Street Zen lowered Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 15th. Craig Hallum reaffirmed a “buy” rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a research note on Friday, July 31st. Weiss Ratings cut Silicon Motion Technology from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, October 16th. Finally, B. Riley Financial reissued a “buy” rating and set a $310.00 target price (up from $288.00) on shares of Silicon Motion Technology in a research report on Friday, October 30th. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $331.25.

Silicon Motion Technology Stock Performance

The company has a debt-to-equity ratio of 1.00, a current ratio of 5.68 and a quick ratio of 3.65. The firm has a fifty day moving average price of $243.28 and a two-hundred day moving average price of $214.92. The stock has a market capitalization of $5.52 billion, a PE ratio of 17.50, a P/E/G ratio of 0.33 and a beta of 1.78.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings data on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.30 by $1.05. Silicon Motion Technology had a return on equity of 32.29% and a net margin of 19.36%. The company had revenue of $560.22 million during the quarter, compared to analysts’ expectations of $529.10 million. During the same quarter in the previous year, the business earned $1.00 EPS. Silicon Motion Technology’s revenue was up 131.5% compared to the same quarter last year. Research analysts expect that Silicon Motion Technology Corporation will post 10.20 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 paid a $0.5750 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $2.30 annualized dividend and a yield of 1.4%. This is a boost from Silicon Motion Technology’s previous quarterly dividend of $0.50. Silicon Motion Technology’s payout ratio is 24.68%.

Institutional Investors Weigh In On Silicon Motion Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Assetmark Inc. raised its position in shares of Silicon Motion Technology by 2.3% in the 1st quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer’s stock worth $316,000 after acquiring an additional 63 shares in the last quarter. Greenleaf Trust lifted its stake in shares of Silicon Motion Technology by 7.9% during the 3rd quarter. Greenleaf Trust now owns 1,025 shares of the semiconductor producer’s stock worth $287,000 after purchasing an additional 75 shares during the last quarter. Cooper Investors PTY Ltd. purchased a new stake in shares of Silicon Motion Technology during the 2nd quarter worth $34,000. Stronghold Wealth Management L.L.C. boosted its position in Silicon Motion Technology by 17.8% during the third quarter. Stronghold Wealth Management L.L.C. now owns 740 shares of the semiconductor producer’s stock valued at $207,000 after purchasing an additional 112 shares in the last quarter. Finally, Pinnacle Wealth Planning Services Inc. boosted its position in Silicon Motion Technology by 33.5% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 658 shares of the semiconductor producer’s stock valued at $184,000 after purchasing an additional 165 shares in the last quarter. Institutional investors 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.