SiTime (NASDAQ:SITM) Shares Gap Up – Should You Buy?

SiTime Corporation (NASDAQ:SITM) shares gapped up prior to trading on Tuesday . The stock had previously closed at $555.15, but opened at $592.56. SiTime shares last traded at $578.0290, with a volume of 28,311 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of SiTime in a research report on Friday, July 17th. Stifel Nicolaus raised their target price on shares of SiTime from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Roth Capital restated a “buy” rating and issued a $900.00 target price on shares of SiTime in a research report on Thursday, May 7th. Wall Street Zen raised shares of SiTime from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Finally, Barclays upgraded shares of SiTime from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $400.00 to $850.00 in a report on Thursday, May 7th. Eight equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $661.88.

SiTime Trading Up 0.1%

The company’s 50-day simple moving average is $677.12 and its 200-day simple moving average is $512.03. The stock has a market capitalization of $15.59 billion, a price-to-earnings ratio of -584.82 and a beta of 2.91.

SiTime (NASDAQ:SITM) last released its quarterly earnings results on Wednesday, May 6th. The company reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.30. SiTime had a negative net margin of 6.38% and a positive return on equity of 0.53%. The firm had revenue of $113.57 million during the quarter, compared to the consensus estimate of $103.51 million. During the same quarter last year, the firm earned $0.26 earnings per share. The company’s revenue for the quarter was up 88.3% on a year-over-year basis. On average, equities research analysts expect that SiTime Corporation will post 3.23 earnings per share for the current fiscal year.

Insider Buying and Selling at SiTime

In other news, CEO Rajesh Vashist sold 30,000 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $701.13, for a total value of $21,033,900.00. Following the completion of the sale, the chief executive officer owned 402,898 shares of the company’s stock, valued at approximately $282,483,874.74. This represents a 6.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Raman Chitkara sold 2,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $727.38, for a total value of $1,454,760.00. Following the transaction, the director owned 19,898 shares of the company’s stock, valued at $14,473,407.24. This trade represents a 9.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 69,709 shares of company stock worth $50,230,546 over the last 90 days. Company insiders own 1.40% of the company’s stock.

Institutional Trading of SiTime

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SITM. Rakuten Securities Inc. increased its stake in SiTime by 188.5% in the fourth quarter. Rakuten Securities Inc. now owns 75 shares of the company’s stock valued at $26,000 after purchasing an additional 49 shares in the last quarter. Parallel Advisors LLC increased its position in shares of SiTime by 26.2% during the 1st quarter. Parallel Advisors LLC now owns 77 shares of the company’s stock valued at $27,000 after purchasing an additional 16 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in SiTime in the fourth quarter worth about $33,000. Larson Financial Group LLC raised its holdings in shares of SiTime by 3,200.0% in the 3rd quarter. Larson Financial Group LLC now owns 99 shares of the company’s stock worth $30,000 after purchasing an additional 96 shares during the period. Finally, Danske Bank A S bought a new stake in shares of SiTime in the fourth quarter valued at $35,000. Institutional investors and hedge funds own 84.31% of the company’s stock.

About SiTime

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime’s products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company’s timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.