Silicon Motion Technology (NASDAQ:SIMO) Stock Falls 13.6% – Should You Sell?

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) were down 13.6% on Wednesday. The company traded as low as $176.89 and last traded at $174.46. 353,763 shares changed hands during trading, a decline of 60% from the average session volume of 889,294 shares. The stock had previously closed at $201.90.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. China Renaissance assumed coverage on Silicon Motion Technology in a research note on Wednesday, October 28th. They issued a “buy” rating and a $300.00 price objective for the company. Susquehanna upped their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a research report on Friday, July 31st. Craig Hallum reaffirmed a “buy” rating and set a $325.00 target price on shares of Silicon Motion Technology in a research report on Friday, July 31st. B. Riley Financial restated a “buy” rating and set a $310.00 price target (up from $288.00) on shares of Silicon Motion Technology in a research note on Friday, October 30th. Finally, Zacks Research downgraded shares of Silicon Motion Technology from a “strong-buy” rating to a “hold” rating in a report on Friday, October 2nd. Ten analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Silicon Motion Technology presently has an average rating of “Moderate Buy” and a consensus price target of $331.25.

Silicon Motion Technology Trading Down 11.0%

The stock has a market capitalization of $6.09 billion, a PE ratio of 19.40, a P/E/G ratio of 0.35 and a beta of 1.78. The firm has a 50 day moving average price of $246.60 and a 200 day moving average price of $214.35. The company has a quick ratio of 3.65, a current ratio of 5.68 and a debt-to-equity ratio of 1.00.

Silicon Motion Technology (NASDAQ:SIMO) last announced its earnings results on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.30 by $1.05. Silicon Motion Technology had a return on equity of 32.29% and a net margin of 19.36%. The company had revenue of $560.22 million for the quarter, compared to analysts’ expectations of $529.10 million. During the same quarter in the previous year, the firm earned $1.00 earnings per share. Silicon Motion Technology’s quarterly revenue was up 131.5% on a year-over-year basis. Equities analysts expect that Silicon Motion Technology Corporation will post 10.01 EPS for the current fiscal year.

Silicon Motion Technology Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be issued a dividend of $0.5750 per share. This represents a $2.30 annualized dividend and a yield of 1.3%. This is a boost from Silicon Motion Technology’s previous quarterly dividend of $0.50. The ex-dividend date is Thursday, November 5th. Silicon Motion Technology’s dividend payout ratio is presently 21.44%.

Institutional Investors Weigh In On Silicon Motion Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fulcrum Asset Management LLP lifted its position in shares of Silicon Motion Technology by 203.1% during the 3rd quarter. Fulcrum Asset Management LLP now owns 12,180 shares of the semiconductor producer’s stock valued at $3,364,000 after buying an additional 8,162 shares during the last quarter. University of Texas Texas AM Investment Management Co. purchased a new stake in Silicon Motion Technology in the 3rd quarter worth about $2,485,000. StoneX Group Inc. purchased a new stake in Silicon Motion Technology in the 3rd quarter worth about $235,000. CenterBook Partners LP increased its holdings in Silicon Motion Technology by 20.7% in the 3rd quarter. CenterBook Partners LP now owns 7,930 shares of the semiconductor producer’s stock worth $2,220,000 after acquiring an additional 1,361 shares during the last quarter. Finally, Kestra Advisory Services LLC raised its stake in Silicon Motion Technology by 14.4% in the 3rd quarter. Kestra Advisory Services LLC now owns 1,848 shares of the semiconductor producer’s stock valued at $517,000 after acquiring an additional 232 shares during the period. Hedge funds and other institutional investors own 78.02% of the company’s stock.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company’s product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.