Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 7.2% – Here’s Why

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) fell 7.2% during mid-day trading on Monday . The stock traded as low as $259.00 and last traded at $264.0720. 107,259 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 892,374 shares. The stock had previously closed at $284.48.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on SIMO shares. Susquehanna raised their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the company a “positive” rating in a research report on Friday, July 31st. Roth Capital reissued a “buy” rating and issued a $350.00 price objective on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Craig Hallum restated a “buy” rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a report on Friday, July 31st. Wall Street Zen cut shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 15th. Finally, Wedbush upped their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the stock. Based on data from MarketBeat, Silicon Motion Technology has a consensus rating of “Buy” and a consensus price target of $341.43.

Silicon Motion Technology Stock Performance

The business’s 50 day moving average price is $263.50 and its 200-day moving average price is $224.59. The firm has a market capitalization of $8.38 billion, a PE ratio of 29.06, a P/E/G ratio of 0.49 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO) last announced its earnings results 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 return on equity of 32.04% and a net margin of 22.06%.The company had revenue of $451.00 million during the quarter, compared to analysts’ expectations of $403.41 million. During the same period last year, the business posted $0.69 EPS. Silicon Motion Technology’s revenue for the quarter was up 127.0% on a year-over-year basis. As a group, analysts anticipate that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current year.

Insider Activity at Silicon Motion Technology

In other Silicon Motion Technology news, Director Kenneth Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, 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 transaction, 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. 5.34% of the stock is owned by insiders.

Institutional Trading of Silicon Motion Technology

Several hedge funds and other institutional investors have recently made changes to their positions in SIMO. Reinhart Partners LLC. grew its holdings in shares of Silicon Motion Technology by 4.8% in the 4th quarter. Reinhart Partners LLC. now owns 1,573,355 shares of the semiconductor producer’s stock worth $145,851,000 after acquiring an additional 72,421 shares during the period. Hawk Ridge Capital Management LP raised its holdings in Silicon Motion Technology by 48.9% during the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock worth $131,752,000 after purchasing an additional 385,568 shares during the last quarter. Lazard Asset Management LLC raised its holdings in Silicon Motion Technology by 2.3% during the third quarter. Lazard Asset Management LLC now owns 783,663 shares of the semiconductor producer’s stock worth $74,299,000 after purchasing an additional 17,741 shares during the last quarter. Wolf Hill Capital Management LP purchased a new stake in Silicon Motion Technology during the fourth quarter worth $53,893,000. Finally, Summit Partners Public Asset Management LLC grew its holdings in Silicon Motion Technology by 33.7% in the fourth quarter. Summit Partners Public Asset Management LLC now owns 534,932 shares of the semiconductor producer’s stock valued at $49,588,000 after purchasing an additional 134,927 shares during the last quarter. Institutional investors and hedge funds own 78.02% of the company’s stock.

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.