Silicon Motion Technology (NASDAQ:SIMO) Trading Down 9.6% – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s share price fell 9.6% during trading on Monday . The stock traded as low as $247.51 and last traded at $244.7950. 141,806 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 831,525 shares. The stock had previously closed at $270.90.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on SIMO shares. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Zacks Research raised shares of Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 5th. Craig Hallum reaffirmed a “buy” rating and set a $250.00 target price on shares of Silicon Motion Technology in a research note on Thursday, April 30th. Susquehanna lifted their price target on shares of Silicon Motion Technology from $175.00 to $275.00 and gave the company a “positive” rating in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $246.43.

Silicon Motion Technology Trading Down 9.4%

The stock has a market cap of $7.51 billion, a PE ratio of 44.02, a P/E/G ratio of 0.54 and a beta of 1.70. The company has a fifty day moving average of $290.45 and a 200-day moving average of $194.55.

Silicon Motion Technology (NASDAQ:SIMO) last posted its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.27. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The firm had revenue of $342.11 million for the quarter, compared to analyst estimates of $299.53 million. During the same quarter in the prior year, the company earned $0.60 EPS. Silicon Motion Technology’s revenue was up 105.5% on a year-over-year basis. As a group, research analysts anticipate that Silicon Motion Technology Corporation will post 8.48 earnings per share for the current fiscal year.

Insider Transactions at Silicon Motion Technology

In other news, Director Kuan-Ming Lin sold 2,000 shares of the stock in a transaction dated 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 owned 8,500 shares of the company’s stock, valued at approximately $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director directly owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 4,000 shares of company stock worth $1,239,250 over the last quarter. Insiders own 5.34% of the company’s stock.

Hedge Funds Weigh In On Silicon Motion Technology

Institutional investors have recently modified their holdings of the business. Legacy Wealth Asset Management LLC boosted its holdings in Silicon Motion Technology by 92.3% in the second quarter. Legacy Wealth Asset Management LLC now owns 4,496 shares of the semiconductor producer’s stock valued at $1,499,000 after purchasing an additional 2,158 shares during the period. UNICOM Systems Inc. purchased a new position in shares of Silicon Motion Technology in the 2nd quarter valued at about $13,733,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Silicon Motion Technology in the 2nd quarter valued at about $88,000. Foster Group Inc. acquired a new position in shares of Silicon Motion Technology during the second quarter worth about $307,000. Finally, Mirador Capital Partners LP purchased a new stake in shares of Silicon Motion Technology during the second quarter worth approximately $2,908,000. 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.