Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $252.61, but opened at $269.95. Silicon Motion Technology shares last traded at $266.42, with a volume of 55,835 shares.

Analysts Set New Price Targets

Several brokerages recently weighed in on SIMO. Susquehanna increased their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the stock a “positive” rating in a report on Thursday, April 30th. Wall Street Zen cut shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. JPMorgan Chase & Co. upped their price objective on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Craig Hallum reaffirmed a “buy” rating and issued a $250.00 target price on shares of Silicon Motion Technology in a report on Thursday, April 30th. Finally, Zacks Research raised shares of Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $246.43.

Silicon Motion Technology Price Performance

The stock has a market capitalization of $9.24 billion, a PE ratio of 54.25, a P/E/G ratio of 0.58 and a beta of 1.70. The stock has a 50 day moving average of $289.64 and a two-hundred day moving average of $187.60.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings data on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, topping analysts’ consensus estimates of $1.31 by $0.27. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The firm had revenue of $342.11 million for the quarter, compared to analyst estimates of $299.53 million. During the same quarter in the prior year, the company posted $0.60 earnings per share. Silicon Motion Technology’s quarterly revenue was up 105.5% on a year-over-year basis. As a group, research analysts predict that Silicon Motion Technology Corporation will post 8.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director 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 sale, the director owned 8,500 shares in the company, valued at $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Han-Ping Shieh sold 1,000 shares of the business’s stock in a transaction dated 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. This represents a 11.76% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 4,000 shares of company stock worth $1,239,250. Corporate insiders own 5.34% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Kornitzer Capital Management Inc. KS acquired a new position in Silicon Motion Technology during the first quarter worth about $4,827,000. AIGH Capital Management LLC acquired a new stake in shares of Silicon Motion Technology in the first quarter valued at approximately $22,458,000. Schwartz Investment Counsel Inc. grew its position in shares of Silicon Motion Technology by 36.4% in the first quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer’s stock valued at $33,687,000 after purchasing an additional 80,000 shares during the last quarter. Calamos Advisors LLC purchased a new position in shares of Silicon Motion Technology during the 1st quarter worth approximately $2,686,000. Finally, Elevation Point Wealth Partners LLC purchased a new position in shares of Silicon Motion Technology during the 1st quarter worth approximately $496,000. 78.02% of the stock is owned by hedge funds and other institutional investors.

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.