Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down – Should You Sell?

Silicon Motion Technology Corporation (NASDAQ:SIMO) shares gapped down before the market opened on Tuesday. The stock had previously closed at $217.24, but opened at $208.40. Silicon Motion Technology shares last traded at $213.64, with a volume of 48,075 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on SIMO shares. Craig Hallum restated a “buy” rating and set a $325.00 price target on shares of Silicon Motion Technology in a report on Friday, July 31st. Weiss Ratings lowered shares of Silicon Motion Technology from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday. Needham & Company LLC lifted their target price on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Roth Capital restated a “buy” rating and issued a $350.00 target price on shares of Silicon Motion Technology in a research note on Thursday, July 30th. Finally, Wall Street Zen lowered Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 15th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $341.43.

Silicon Motion Technology Trading Down 0.6%

The stock has a market capitalization of $7.32 billion, a PE ratio of 25.32, a price-to-earnings-growth ratio of 0.37 and a beta of 1.69. The firm has a 50-day moving average price of $256.75 and a 200-day moving average price of $249.74.

Silicon Motion Technology (NASDAQ:SIMO) last released its earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 EPS for the quarter, topping analysts’ consensus estimates of $2.13 by $0.30. The company had revenue of $451.00 million for the quarter, compared to analysts’ expectations of $403.41 million. Silicon Motion Technology had a return on equity of 32.04% and a net margin of 22.06%. The business’s revenue for the quarter was up 127.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.69 EPS. Sell-side analysts expect that Silicon Motion Technology Corporation will post 10.60 earnings per share for the current fiscal year.

Institutional Trading of Silicon Motion Technology

Several hedge funds have recently added to or reduced their stakes in SIMO. Hawk Ridge Capital Management LP grew its position in shares of Silicon Motion Technology by 48.9% during the 1st quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock valued at $131,752,000 after acquiring an additional 385,568 shares during the period. Lazard Asset Management LLC increased 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 purchasing an additional 23,403 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Silicon Motion Technology by 112.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer’s stock worth $47,802,000 after purchasing an additional 225,221 shares during the last quarter. Tidal Investments LLC raised its holdings 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 worth $38,873,000 after purchasing an additional 67,178 shares during the period. Finally, Schwartz Investment Counsel Inc. raised its holdings in shares of Silicon Motion Technology by 36.4% in the 1st quarter. Schwartz Investment Counsel Inc. now owns 300,000 shares of the semiconductor producer’s stock worth $33,687,000 after purchasing an additional 80,000 shares during the period. Institutional investors own 78.02% of the company’s stock.

Silicon Motion Technology Company Profile

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.