Silicon Motion Technology (NASDAQ:SIMO) Sees Strong Trading Volume – Should You Buy?

Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) saw unusually-high trading volume on Tuesday . Approximately 606,668 shares traded hands during trading, a decline of 31% from the previous session’s volume of 882,402 shares.The stock last traded at $227.2530 and had previously closed at $230.61.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Craig Hallum reaffirmed a “buy” rating and set a $325.00 price target on shares of Silicon Motion Technology in a research report on Friday, July 31st. Wall Street Zen upgraded Silicon Motion Technology from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 1st. Susquehanna upped their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the company a “positive” rating in a research report on Friday, July 31st. Weiss Ratings reiterated a “hold (c)” rating on shares of Silicon Motion Technology in a research note on Monday, August 3rd. Finally, Needham & Company LLC raised their price target on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Silicon Motion Technology currently has a consensus rating of “Buy” and a consensus price target of $341.43.

Silicon Motion Technology Trading Down 2.3%

The firm’s fifty day moving average price is $285.71 and its two-hundred day moving average price is $203.16. The stock has a market capitalization of $7.64 billion, a PE ratio of 26.31, a price-to-earnings-growth ratio of 0.44 and a beta of 1.71.

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 company had revenue of $451.00 million for the quarter, compared to the consensus estimate of $403.41 million. During the same quarter in the prior year, the business posted $0.69 earnings per share. Silicon Motion Technology’s revenue for the quarter was up 127.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Silicon Motion Technology Corporation will post 10.78 earnings per share for the current fiscal year.

Insider Transactions at Silicon Motion Technology

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SIMO. Wolf Hill Capital Management LP acquired a new position in Silicon Motion Technology in the 4th quarter valued at about $53,893,000. Hawk Ridge Capital Management LP boosted its stake in shares of Silicon Motion Technology by 111.3% in the fourth quarter. Hawk Ridge Capital Management LP now owns 787,747 shares of the semiconductor producer’s stock valued at $73,024,000 after purchasing an additional 415,000 shares during the period. Man Group plc boosted its stake in shares of Silicon Motion Technology by 820.7% in the fourth 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 period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Silicon Motion Technology by 112.3% in 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 in the last quarter. Finally, AIGH Capital Management LLC purchased a new stake in Silicon Motion Technology during the 1st quarter worth approximately $22,458,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

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.