Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 6.7% – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price fell 6.7% on Monday . The stock traded as low as $241.09 and last traded at $240.93. 177,003 shares changed hands during trading, a decline of 80% from the average daily volume of 905,050 shares. The stock had previously closed at $258.36.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Weiss Ratings raised Silicon Motion Technology from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, August 17th. Wall Street Zen downgraded Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Susquehanna increased their price target on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a research report on Friday, July 31st. Wedbush increased 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 report on Monday, June 22nd. Finally, Needham & Company LLC raised their price target on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating and nine have issued a Buy rating to the company. Based on data from MarketBeat, Silicon Motion Technology presently has a consensus rating of “Buy” and an average target price of $341.43.

Silicon Motion Technology Stock Down 0.6%

The stock’s 50-day moving average price is $279.58 and its 200 day moving average price is $213.35. The company has a market cap of $8.20 billion, a P/E ratio of 28.35, a price-to-earnings-growth ratio of 0.42 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO) last posted its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.13 by $0.30. The business had revenue of $451.00 million for the quarter, compared to analyst estimates of $403.41 million. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. Silicon Motion Technology’s revenue was up 127.0% compared to the same quarter last year. During the same period last year, the business posted $0.69 EPS. Analysts expect that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total transaction of $610,000.00. Following the completion of the transaction, the director owned 8,500 shares of the company’s stock, valued at approximately $2,592,500. The trade was a 19.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the stock in a transaction that occurred 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 sale, the director owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 4,000 shares of company stock worth $1,239,250. 5.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Wolf Hill Capital Management LP bought a new stake in shares of Silicon Motion Technology in the fourth quarter valued at approximately $53,893,000. Hawk Ridge Capital Management LP increased its position in Silicon Motion Technology by 111.3% during the fourth quarter. Hawk Ridge Capital Management LP now owns 787,747 shares of the semiconductor producer’s stock worth $73,024,000 after acquiring an additional 415,000 shares during the period. Man Group plc raised its stake in Silicon Motion Technology by 820.7% during the 4th quarter. Man Group plc now owns 381,048 shares of the semiconductor producer’s stock valued at $35,323,000 after purchasing an additional 339,663 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Silicon Motion Technology by 112.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer’s stock valued at $47,802,000 after purchasing an additional 225,221 shares during the period. Finally, AIGH Capital Management LLC bought a new stake in Silicon Motion Technology in the 1st quarter valued at $22,458,000. 78.02% of the stock is owned by institutional investors.

About Silicon Motion Technology

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.