Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO) shares gapped up prior to trading on Thursday . The stock had previously closed at $321.66, but opened at $344.75. Silicon Motion Technology shares last traded at $329.7190, with a volume of 174,671 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on SIMO shares. Roth Mkm reaffirmed a “buy” rating and set a $250.00 target price on shares of Silicon Motion Technology in a research note on Wednesday, April 29th. Zacks Research raised Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 5th. Susquehanna upped their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the stock a “positive” rating in a research note on Thursday, April 30th. JPMorgan Chase & Co. raised their price objective on Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Finally, B. Riley Financial reiterated a “buy” rating on shares of Silicon Motion Technology in a research note on Thursday, April 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 company. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $246.43.

Silicon Motion Technology Trading Up 1.5%

The stock’s 50 day moving average is $244.77 and its 200-day moving average is $160.37. The company has a market cap of $11.07 billion, a P/E ratio of 64.91, a PEG ratio of 0.71 and a beta of 1.72.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings data on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.31 by $0.27. The business had revenue of $342.11 million during the quarter, compared to analyst estimates of $299.53 million. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. Silicon Motion Technology’s revenue was up 105.5% compared to the same quarter last year. During the same period last year, the business earned $0.60 EPS. As a group, sell-side analysts forecast that Silicon Motion Technology Corporation will post 8.35 EPS for the current year.

Insider Buying and Selling

In related news, 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 transaction, the director directly owned 8,500 shares in the company, valued at $2,592,500. The trade was a 19.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the business’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 transaction of $328,000.00. Following the completion of the transaction, the director owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 4,000 shares of company stock worth $1,239,250. Corporate insiders own 5.34% of the company’s stock.

Institutional Trading of Silicon Motion Technology

A number of institutional investors and hedge funds have recently modified their holdings of SIMO. Royal Bank of Canada lifted its holdings in shares of 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 valued at $3,522,000 after purchasing an additional 32,527 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Silicon Motion Technology by 155.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 73,988 shares of the semiconductor producer’s stock worth $3,741,000 after buying an additional 44,976 shares in the last quarter. Geode Capital Management LLC raised its position in Silicon Motion Technology by 2.6% in the 2nd quarter. Geode Capital Management LLC now owns 37,806 shares of the semiconductor producer’s stock worth $2,842,000 after buying an additional 962 shares during the last quarter. Creative Planning purchased a new position in Silicon Motion Technology in the 2nd quarter worth about $324,000. Finally, Legal & General Group Plc lifted its stake in Silicon Motion Technology by 141.4% during the 2nd quarter. Legal & General Group Plc now owns 9,738 shares of the semiconductor producer’s stock valued at $732,000 after acquiring an additional 5,704 shares during the period. Institutional investors 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.