Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up – Should You Buy?

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $321.66, but opened at $344.75. Silicon Motion Technology shares last traded at $329.7190, with a volume of 174,671 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on SIMO shares. Wedbush boosted their price target on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, June 22nd. Craig Hallum restated a “buy” rating and issued a $250.00 price objective on shares of Silicon Motion Technology in a research report on Thursday, April 30th. B. Riley Financial reaffirmed a “buy” rating on shares of Silicon Motion Technology in a report on Thursday, April 30th. JPMorgan Chase & Co. boosted their target price on Silicon Motion Technology from $145.00 to $260.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Finally, Zacks Research raised Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $246.43.

Silicon Motion Technology Stock Performance

The stock’s fifty day moving average price is $252.00 and its 200-day moving average price is $163.02. The firm has a market cap of $10.35 billion, a PE ratio of 60.69, a P/E/G ratio of 0.73 and a beta of 1.72.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.27. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. The company had revenue of $342.11 million for the quarter, compared to analyst estimates of $299.53 million. During the same period in the prior year, the business posted $0.60 earnings per share. The firm’s revenue for the quarter was up 105.5% compared to the same quarter last year. Sell-side analysts forecast that Silicon Motion Technology Corporation will post 8.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Han-Ping Shieh sold 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the completion of the transaction, the director directly owned 7,500 shares of the company’s stock, valued at $2,460,000. This trade represents a 11.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total value of $610,000.00. Following the transaction, the director directly owned 8,500 shares of the company’s stock, valued at approximately $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 4,000 shares of company stock worth $1,239,250. Insiders own 5.34% of the company’s stock.

Institutional Trading of Silicon Motion Technology

Several large investors have recently bought and sold shares of SIMO. Apis Capital Advisors LLC boosted its position in shares of Silicon Motion Technology by 11.7% in the 3rd quarter. Apis Capital Advisors LLC now owns 286,000 shares of the semiconductor producer’s stock worth $27,116,000 after buying an additional 30,000 shares in the last quarter. SG Americas Securities LLC increased its holdings in Silicon Motion Technology by 44.3% during the 4th quarter. SG Americas Securities LLC now owns 16,290 shares of the semiconductor producer’s stock valued at $1,510,000 after acquiring an additional 5,002 shares in the last quarter. UBS Group AG increased its holdings in Silicon Motion Technology by 39.0% during the 4th quarter. UBS Group AG now owns 351,541 shares of the semiconductor producer’s stock valued at $32,588,000 after acquiring an additional 98,548 shares in the last quarter. Granahan Investment Management LLC raised its position in Silicon Motion Technology by 59.7% during the third quarter. Granahan Investment Management LLC now owns 207,758 shares of the semiconductor producer’s stock worth $19,698,000 after acquiring an additional 77,667 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Silicon Motion Technology by 89.7% during the third quarter. JPMorgan Chase & Co. now owns 8,634 shares of the semiconductor producer’s stock worth $819,000 after acquiring an additional 4,082 shares during the last quarter. Institutional investors and hedge funds own 78.02% of the company’s stock.

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.