Silicon Motion Technology (NASDAQ:SIMO) Stock Price Up 6.7% – Still a Buy?

Silicon Motion Technology Corporation (NASDAQ:SIMO) rose 6.7% during trading on Friday . The company traded as high as $282.59 and last traded at $283.0310. 279,966 shares were traded during trading, a decline of 69% from the average daily volume of 893,940 shares. The stock had previously closed at $265.25.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Craig Hallum reiterated a “buy” rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a research report on Friday, July 31st. Roth Capital restated a “buy” rating and set a $350.00 target price on shares of Silicon Motion Technology in a report on Thursday, July 30th. Susquehanna lifted their price target on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the company a “positive” rating in a research note on Friday, July 31st. Wedbush increased their price objective 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. Finally, Needham & Company LLC raised their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating and nine have assigned a Buy rating to the company. Based on data from MarketBeat, Silicon Motion Technology has a consensus rating of “Buy” and an average target price of $341.43.

Silicon Motion Technology Stock Performance

The firm has a market cap of $9.72 billion, a price-to-earnings ratio of 33.91, a price-to-earnings-growth ratio of 0.48 and a beta of 1.71. The stock has a 50-day moving average of $263.83 and a 200-day moving average of $223.55.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, topping analysts’ consensus estimates of $2.13 by $0.30. The firm 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 prior year, the firm posted $0.69 EPS. Sell-side analysts predict that Silicon Motion Technology Corporation will post 10.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Han-Ping Shieh sold 1,000 shares of the firm’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the completion of the transaction, the director owned 7,500 shares in the company, valued at $2,460,000. This trade represents a 11.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kenneth Kuan-Ming Lin sold 2,000 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the transaction, the director owned 8,500 shares of the company’s stock, valued at $2,592,500. The trade was a 19.05% decrease in their position. The disclosure for this sale is available in the SEC filing. 5.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Brown Brothers Harriman & Co. bought a new position in Silicon Motion Technology in the third quarter valued at approximately $26,000. Cooper Investors PTY Ltd. bought a new stake in shares of Silicon Motion Technology during the 2nd quarter worth approximately $34,000. Arax Advisory Partners boosted its holdings in shares of Silicon Motion Technology by 220.9% in the 4th quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock valued at $41,000 after buying an additional 307 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Silicon Motion Technology by 169.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock valued at $44,000 after buying an additional 366 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new position in shares of Silicon Motion Technology in the second quarter valued at $75,000. 78.02% of the stock is owned by institutional investors and hedge funds.

About Silicon Motion Technology

Silicon Motion Technology Corporation develops and supplies semiconductor solutions for NAND flash storage devices. Its products include flash memory controllers for solid-state drives (SSDs), client and enterprise storage systems, embedded storage, and other applications that use NAND flash memory.

The company provides controller technologies used in consumer electronics, personal computers, mobile devices, industrial equipment, and data-center infrastructure. Its offerings are designed to manage data storage, improve performance and reliability, and support the integration of NAND flash memory into a range of storage products.

Silicon Motion was founded in 1995 and went public on the Nasdaq Stock Market in 2005 under the symbol SIMO.