Silicon Motion Technology (NASDAQ:SIMO) Shares Down 5.3% – Here’s What Happened

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) fell 5.3% during trading on Tuesday . The stock traded as low as $230.02 and last traded at $233.6740. Approximately 144,301 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 897,953 shares. The stock had previously closed at $246.84.

Analysts Set New Price Targets

SIMO has been the subject of a number of research analyst reports. Wedbush raised 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. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Weiss Ratings raised Silicon Motion Technology from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, August 17th. Craig Hallum reaffirmed a “buy” rating and set a $325.00 price objective on shares of Silicon Motion Technology in a report on Friday, July 31st. Finally, B. Riley Financial increased their target price on Silicon Motion Technology from $312.00 to $350.00 and gave the company a “buy” rating in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $341.43.

Silicon Motion Technology Price Performance

The firm has a market cap of $8.22 billion, a PE ratio of 28.43, a price-to-earnings-growth ratio of 0.41 and a beta of 1.71. The company has a 50-day simple moving average of $270.84 and a 200-day simple moving average of $218.20.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $451.00 million during 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 quarterly revenue was up 127.0% compared to the same quarter last year. As a group, equities research analysts predict that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Han-Ping Shieh sold 1,000 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total transaction of $328,000.00. Following the completion of the sale, the director directly owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Kuan-Ming Lin sold 2,000 shares of the company’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 in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 5.34% of the company’s stock.

Institutional Trading of Silicon Motion Technology

A number of hedge funds have recently bought and sold shares of the stock. Reinhart Partners LLC. lifted its position in shares of Silicon Motion Technology by 4.8% during the fourth quarter. Reinhart Partners LLC. now owns 1,573,355 shares of the semiconductor producer’s stock valued at $145,851,000 after buying an additional 72,421 shares during the last quarter. Hawk Ridge Capital Management LP grew its position in shares of Silicon Motion Technology by 48.9% in the 1st quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock worth $131,752,000 after buying an additional 385,568 shares during the last quarter. Lazard Asset Management LLC grew its position in shares of Silicon Motion Technology by 2.3% in the 3rd quarter. Lazard Asset Management LLC now owns 783,663 shares of the semiconductor producer’s stock worth $74,299,000 after buying an additional 17,741 shares during the last quarter. Wolf Hill Capital Management LP bought a new position in shares of Silicon Motion Technology during the 4th quarter worth approximately $53,893,000. Finally, Summit Partners Public Asset Management LLC raised its stake in shares of Silicon Motion Technology by 33.7% during the 4th quarter. Summit Partners Public Asset Management LLC now owns 534,932 shares of the semiconductor producer’s stock worth $49,588,000 after acquiring an additional 134,927 shares in the last quarter. Hedge funds and other institutional investors own 78.02% of the company’s stock.

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.