Silicon Motion Technology (NASDAQ:SIMO) Shares Up 4.2% – Should You Buy?

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price shot up 4.2% during trading on Wednesday . The stock traded as high as $253.99 and last traded at $252.06. 156,380 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 905,082 shares. The stock had previously closed at $241.83.

Wall Street Analyst Weigh In

SIMO has been the subject of several analyst reports. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Susquehanna raised their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a report on Friday, July 31st. Wedbush lifted their price target 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. Roth Capital reissued a “buy” rating and issued a $350.00 price target on shares of Silicon Motion Technology in a report on Thursday, July 30th. Finally, B. Riley Financial upped their price objective on Silicon Motion Technology from $312.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating and nine have assigned a Buy rating to the stock. According to MarketBeat.com, Silicon Motion Technology presently has a consensus rating of “Buy” and an average price target of $341.43.

Silicon Motion Technology Price Performance

The business’s fifty day simple moving average is $279.58 and its two-hundred day simple moving average is $213.35. The company has a market cap of $8.69 billion, a PE ratio of 30.02, a PEG ratio of 0.42 and a beta of 1.71.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share for the quarter, topping analysts’ consensus estimates of $2.13 by $0.30. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The business had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. During the same quarter in the prior year, the firm posted $0.69 earnings per share. The company’s revenue was up 127.0% compared to the same quarter last year. As a group, analysts predict that Silicon Motion Technology Corporation will post 10.78 EPS for the current year.

Insider Transactions at Silicon Motion Technology

In other Silicon Motion Technology news, Director Han-Ping Shieh sold 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total value of $328,000.00. Following the sale, the director directly owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. This trade represents a 11.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the sale, the director owned 8,500 shares of the company’s stock, valued at $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,000 shares of company stock valued at $1,239,250 in the last ninety days. 5.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Silicon Motion Technology

A number of institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its position in Silicon Motion Technology by 87.6% during the first quarter. Royal Bank of Canada now owns 69,660 shares of the semiconductor producer’s stock worth $3,522,000 after acquiring an additional 32,527 shares during the period. Goldman Sachs Group Inc. grew its position in shares of Silicon Motion Technology by 155.0% in the first quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer’s stock valued at $3,741,000 after purchasing an additional 44,976 shares during the period. Geode Capital Management LLC grew its position in shares of Silicon Motion Technology by 2.6% in the second quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer’s stock valued at $2,842,000 after purchasing an additional 962 shares during the period. Creative Planning purchased a new stake in shares of Silicon Motion Technology during the second quarter worth about $324,000. Finally, Legal & General Group Plc increased its stake in shares of Silicon Motion Technology by 141.4% during the second quarter. Legal & General Group Plc now owns 9,738 shares of the semiconductor producer’s stock worth $732,000 after purchasing an additional 5,704 shares in the last quarter. Institutional investors and hedge funds own 78.02% of the company’s stock.

Silicon Motion Technology Company Profile

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.