Silicon Motion Technology (NASDAQ:SIMO) Trading Down 7.2% – Should You Sell?

Silicon Motion Technology Corporation (NASDAQ:SIMO) shares were down 7.2% during trading on Monday . The company 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 Analyst Weigh In

A number of equities research analysts have weighed in on the company. Wall Street Zen downgraded Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. Craig Hallum reiterated a “buy” rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a report on Friday, July 31st. Wedbush increased their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a research report on Monday, June 22nd. Roth Capital reissued a “buy” rating and set a $350.00 price objective on shares of Silicon Motion Technology in a report on Thursday, July 30th. Finally, Weiss Ratings raised Silicon Motion Technology from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, August 17th. One analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. According to MarketBeat.com, Silicon Motion Technology currently has an average rating of “Buy” and a consensus target price of $341.43.

Silicon Motion Technology Stock Performance

The company has a market cap of $8.11 billion, a P/E ratio of 28.04, a price-to-earnings-growth ratio of 0.41 and a beta of 1.71. The business has a 50 day moving average price of $260.75 and a two-hundred day moving average price of $225.98.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $451.00 million for the quarter, compared to analyst estimates of $403.41 million. During the same period last year, the company earned $0.69 EPS. Silicon Motion Technology’s revenue for the quarter was up 127.0% compared to the same quarter last year. As a group, research analysts expect that Silicon Motion Technology Corporation will post 10.78 EPS for the current year.

Insider Activity at Silicon Motion Technology

In related news, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction on Thursday, June 18th. The shares were 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 of the company’s stock, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 5.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Silicon Motion Technology

Several institutional investors have recently added to or reduced their stakes in SIMO. Tidal Investments LLC increased its position in shares of Silicon Motion Technology by 135.9% in the second quarter. Tidal Investments LLC now owns 116,620 shares of the semiconductor producer’s stock valued at $38,873,000 after acquiring an additional 67,178 shares during the period. NewEdge Advisors LLC boosted its holdings in shares of Silicon Motion Technology by 190.6% during the second quarter. NewEdge Advisors LLC now owns 2,130 shares of the semiconductor producer’s stock worth $710,000 after purchasing an additional 1,397 shares during the period. IFP Advisors Inc purchased a new stake in shares of Silicon Motion Technology during the second quarter worth about $162,000. Baird Financial Group Inc. bought a new stake in shares of Silicon Motion Technology in the second quarter worth about $663,000. Finally, Allworth Financial LP grew its stake in shares of Silicon Motion Technology by 26.4% in the second quarter. Allworth Financial LP now owns 834 shares of the semiconductor producer’s stock worth $278,000 after purchasing an additional 174 shares during the last quarter. Hedge funds and other institutional investors own 78.02% of the company’s stock.

Silicon Motion Technology Company Profile

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.