Silicon Motion Technology (NASDAQ:SIMO) Sees Unusually-High Trading Volume – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO) shares saw strong trading volume on Tuesday . Approximately 606,668 shares were traded during trading, a decline of 31% from the previous session’s volume of 882,402 shares.The stock last traded at $227.2530 and had previously closed at $230.61.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SIMO. Needham & Company LLC raised their price target on Silicon Motion Technology from $240.00 to $355.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Roth Capital reissued a “buy” rating and set a $350.00 price objective on shares of Silicon Motion Technology in a research report on Thursday, July 30th. JPMorgan Chase & Co. increased their target price on Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Craig Hallum reaffirmed a “buy” rating and issued a $325.00 target price on shares of Silicon Motion Technology in a report on Friday, July 31st. Finally, Wall Street Zen raised Silicon Motion Technology from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $341.43.

Silicon Motion Technology Stock Performance

The firm’s 50-day simple moving average is $282.85 and its 200-day simple moving average is $204.79. The company has a market capitalization of $8.18 billion, a price-to-earnings ratio of 28.29, a price-to-earnings-growth ratio of 0.39 and a beta of 1.71.

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

Insider Activity at Silicon Motion Technology

In other news, Director Han-Ping Shieh sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the sale, the director directly owned 7,500 shares in the company, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the sale, the director owned 8,500 shares in the company, valued at approximately $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,000 shares of company stock worth $1,239,250 in the last three months. 5.34% of the stock is owned by insiders.

Hedge Funds Weigh In On Silicon Motion Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in SIMO. Brown Brothers Harriman & Co. bought a new stake in Silicon Motion Technology in the third quarter valued at about $26,000. WealthCollab LLC lifted its stake in Silicon Motion Technology by 77.4% during the fourth quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer’s stock worth $32,000 after purchasing an additional 151 shares during the period. Cooper Investors PTY Ltd. bought a new position in Silicon Motion Technology during the second quarter worth about $34,000. Arax Advisory Partners boosted its holdings in Silicon Motion Technology by 220.9% during the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock valued at $41,000 after purchasing an additional 307 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Silicon Motion Technology by 169.4% during the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock valued at $44,000 after purchasing an additional 366 shares in the last quarter. 78.02% of the stock is owned by institutional investors.

About Silicon Motion Technology

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.