Silicon Motion Technology (NASDAQ:SIMO) Shares Down 3.8% – Here’s Why

Silicon Motion Technology Co. (NASDAQ:SIMO)’s stock price traded down 3.8% during mid-day trading on Tuesday . The stock traded as low as $54.48 and last traded at $54.36. 37,025 shares were traded during trading, a decline of 89% from the average session volume of 342,340 shares. The stock had previously closed at $56.50.

Wall Street Analyst Weigh In

SIMO has been the subject of several research reports. Wedbush reiterated an “outperform” rating and issued a $90.00 target price on shares of Silicon Motion Technology in a research note on Monday, December 23rd. Needham & Company LLC reiterated a “buy” rating and issued a $70.00 price objective on shares of Silicon Motion Technology in a research report on Friday, February 7th. Finally, StockNews.com cut Silicon Motion Technology from a “buy” rating to a “hold” rating in a research report on Thursday, February 13th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $80.63.

Silicon Motion Technology Trading Down 4.2 %

The stock has a fifty day moving average price of $54.21 and a 200-day moving average price of $55.44. The firm has a market capitalization of $1.82 billion, a price-to-earnings ratio of 20.13, a PEG ratio of 1.36 and a beta of 0.71.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.10). Silicon Motion Technology had a net margin of 11.29% and a return on equity of 11.63%. On average, equities analysts expect that Silicon Motion Technology Co. will post 3.08 EPS for the current year.

Silicon Motion Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Stockholders of record on Thursday, February 13th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 3.69%. The ex-dividend date was Thursday, February 13th. Silicon Motion Technology’s payout ratio is 74.35%.

Silicon Motion Technology announced that its board has approved a share buyback program on Wednesday, February 5th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the semiconductor producer to repurchase up to 2.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Silicon Motion Technology

Several institutional investors have recently bought and sold shares of the business. FMR LLC increased its stake in shares of Silicon Motion Technology by 27.7% in the third quarter. FMR LLC now owns 2,239,574 shares of the semiconductor producer’s stock valued at $136,032,000 after buying an additional 485,862 shares in the last quarter. Lord Abbett & CO. LLC raised its position in shares of Silicon Motion Technology by 20.0% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,324,930 shares of the semiconductor producer’s stock worth $71,612,000 after acquiring an additional 221,017 shares during the last quarter. Pertento Partners LLP lifted its stake in shares of Silicon Motion Technology by 31.2% during the fourth quarter. Pertento Partners LLP now owns 1,166,914 shares of the semiconductor producer’s stock valued at $63,072,000 after acquiring an additional 277,462 shares during the period. Reinhart Partners LLC. boosted its holdings in Silicon Motion Technology by 5.1% in the fourth quarter. Reinhart Partners LLC. now owns 1,135,738 shares of the semiconductor producer’s stock valued at $61,387,000 after acquiring an additional 55,363 shares during the last quarter. Finally, Invesco Ltd. increased its position in Silicon Motion Technology by 22.8% in the fourth quarter. Invesco Ltd. now owns 1,038,779 shares of the semiconductor producer’s stock worth $56,146,000 after purchasing an additional 192,646 shares during the period. Institutional investors 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.