SiTime (NASDAQ:SITM) Sees Large Volume Increase Following Earnings Beat

SiTime Corporation (NASDAQ:SITM) saw unusually-high trading volume on Thursday following a stronger than expected earnings report. 1,010,248 shares traded hands during mid-day trading, an increase of 108% from the average daily volume of 486,794 shares. The stock last traded at $343.0760 and had previously closed at $403.27.

The company reported $4.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.62 by $0.39. The company had revenue of $298.67 million for the quarter, compared to analysts’ expectations of $292.65 million. SiTime had a return on equity of 4.99% and a net margin of 3.01%. SiTime’s revenue was up 257.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.87 EPS.

SiTime News Roundup

Here are the key news stories impacting SiTime this week:

• Positive Sentiment: SiTime earned $4.01 per share, above the $3.62 analyst consensus, and generated $298.67 million in revenue versus expectations of $292.65 million. Revenue increased 257.4% year over year, and reported gross margin was 70.7%. The company attributed growth in part to AI infrastructure demand and the Renesas timing acquisition. Read More. · Read More.
• Positive Sentiment: Rosenblatt Securities raised its price target for SITM, according to a report, adding a favorable analyst signal; the supplied article summary did not specify the revised target. Read More.
• Negative Sentiment: Needham cut its target from $900 to $600, a sizable reduction that could temper enthusiasm despite retaining a Buy rating. The revised target was still reported as implying 59.4% upside from $376.40. Read More.

Analyst Upgrades and Downgrades

SITM has been the topic of a number of recent analyst reports. Zacks Research lowered shares of SiTime from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. The Goldman Sachs Group reiterated a “buy” rating and set a $900.00 target price on shares of SiTime in a research report on Thursday, August 6th. Benchmark began coverage on shares of SiTime in a research report on Wednesday, August 19th. They set a “buy” rating and a $850.00 target price on the stock. Morgan Stanley initiated coverage on shares of SiTime in a research report on Thursday, September 17th. They set an “overweight” rating and a $370.00 target price for the company. Finally, Needham & Company LLC decreased their price objective on SiTime from $900.00 to $600.00 and set a “buy” rating for the company in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, SiTime presently has a consensus rating of “Moderate Buy” and an average price target of $706.00.

Insider Buying and Selling

In other news, Director Katherine Schuelke sold 500 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $698.05, for a total value of $349,025.00. Following the completion of the transaction, the director owned 12,010 shares of the company’s stock, valued at $8,383,580.50. The trade was a 4.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Rajesh Vashist sold 12,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $603.47, for a total transaction of $7,241,640.00. Following the completion of the transaction, the chief executive officer directly owned 345,544 shares of the company’s stock, valued at $208,525,437.68. This represents a 3.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,924 shares of company stock worth $10,056,661 over the last three months. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On SiTime

Several large investors have recently bought and sold shares of SITM. BlackRock Inc. purchased a new stake in shares of SiTime during the second quarter worth about $1,781,937,000. Bank of New York Mellon Corp acquired a new stake in shares of SiTime in the second quarter worth $123,264,000. Arrowstreet Capital Limited Partnership boosted its position in shares of SiTime by 865.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 79,178 shares of the company’s stock worth $27,344,000 after buying an additional 70,974 shares during the period. Bamco Inc. NY acquired a new stake in SiTime in the second quarter valued at approximately $52,341,000. Finally, TimesSquare Capital Management LLC acquired a new stake in shares of SiTime during the second quarter valued at about $48,194,000. Hedge funds and other institutional investors own 84.31% of the company’s stock.

SiTime Price Performance

The firm has a market cap of $10.71 billion, a price-to-earnings ratio of 711.89 and a beta of 2.88. The business’s 50-day moving average price is $570.71 and its two-hundred day moving average price is $546.08. The company has a debt-to-equity ratio of 1.29, a current ratio of 19.44 and a quick ratio of 18.50.

About SiTime

SiTime Corporation (NASDAQ: SITM) develops and supplies precision timing solutions for electronic systems. Its products are designed to generate, distribute and maintain accurate timing signals, which help connected devices and infrastructure operate reliably and efficiently.

The company’s portfolio includes silicon MEMS-based resonators and oscillators, clock generators, clock synchronizers, jitter attenuators and other timing components. These products are used in applications such as data centers, telecommunications and networking equipment, automotive systems, industrial machinery, aerospace and defense electronics, and consumer devices.

SiTime’s technology is intended to address demanding requirements for frequency stability, signal integrity, power efficiency and resilience in challenging operating environments.