Silicon Motion Technology (NASDAQ:SIMO) Stock Falls 10.6% – Should You Sell?

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price was down 10.6% on Thursday. The company traded as low as $200.25 and last traded at $198.7090. 247,947 shares changed hands during trading, a decline of 71% from the average session volume of 869,864 shares. The stock had previously closed at $222.30.

Analysts Set New Price Targets

Several research firms have commented on SIMO. Craig Hallum restated a “buy” rating and issued a $325.00 price target on shares of Silicon Motion Technology in a research note on Friday, July 31st. Susquehanna boosted their target price on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a research note on Friday, July 31st. Zacks Research lowered Silicon Motion Technology from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 2nd. Wall Street Zen downgraded shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. Finally, Roth Capital restated a “buy” rating and set a $350.00 price target on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Nine analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $332.57.

Silicon Motion Technology Stock Performance

The business has a 50-day moving average of $253.31 and a 200 day moving average of $251.26. The stock has a market cap of $6.35 billion, a PE ratio of 21.97, a PEG ratio of 0.33 and a beta of 1.69.

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 for the quarter, compared to analyst estimates of $403.41 million. During the same period last year, the company earned $0.69 EPS. The firm’s quarterly revenue was up 127.0% on a year-over-year basis. Equities analysts expect that Silicon Motion Technology Corporation will post 10.60 EPS for the current fiscal year.

Silicon Motion Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be given a dividend of $0.5750 per share. This represents a $2.30 annualized dividend and a yield of 1.2%. This is a positive change from Silicon Motion Technology’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Thursday, November 5th. Silicon Motion Technology’s dividend payout ratio (DPR) is currently 23.33%.

Institutional Trading of Silicon Motion Technology

Institutional investors and hedge funds have recently made changes to their positions in the company. Hawk Ridge Capital Management LP grew its holdings in Silicon Motion Technology by 48.9% during the first quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock worth $131,752,000 after acquiring an additional 385,568 shares during the period. Lazard Asset Management LLC boosted its stake in shares of Silicon Motion Technology by 3.1% during the 1st quarter. Lazard Asset Management LLC now owns 781,981 shares of the semiconductor producer’s stock worth $87,809,000 after acquiring an additional 23,403 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its holdings in shares of Silicon Motion Technology by 2.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 307,570 shares of the semiconductor producer’s stock worth $86,120,000 after acquiring an additional 7,871 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Silicon Motion Technology by 112.3% during the first 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 last quarter. Finally, Tidal Investments LLC boosted its position in shares of Silicon Motion Technology by 135.9% in the 2nd quarter. Tidal Investments LLC now owns 116,620 shares of the semiconductor producer’s stock valued at $38,873,000 after purchasing an additional 67,178 shares during the period. 78.02% of the stock is currently owned by institutional investors and hedge funds.

About Silicon Motion Technology

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.