Silicon Motion Technology (NASDAQ:SIMO) Trading Down 8.6% – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO) dropped 8.6% during mid-day trading on Friday . The company traded as low as $295.00 and last traded at $297.40. 273,038 shares were traded during trading, a decline of 68% from the average session volume of 847,579 shares. The stock had previously closed at $325.26.

Wall Street Analyst Weigh In

A number of research firms recently commented on SIMO. Wedbush increased their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday. Roth Mkm restated a “buy” rating and issued a $250.00 price objective on shares of Silicon Motion Technology in a research note on Wednesday, April 29th. Zacks Research raised shares of Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 5th. Wall Street Zen raised shares of Silicon Motion Technology from a “buy” rating to a “strong-buy” rating in a research note on Sunday, May 3rd. Finally, Susquehanna upped their target price 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. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Silicon Motion Technology currently has an average rating of “Buy” and a consensus target price of $246.43.

Silicon Motion Technology Price Performance

The company’s 50-day simple moving average is $248.67 and its 200-day simple moving average is $162.01. The stock has a market capitalization of $10.42 billion, a price-to-earnings ratio of 61.27, a P/E/G ratio of 0.72 and a beta of 1.72.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 EPS 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 the consensus estimate of $299.53 million. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.Silicon Motion Technology’s revenue for the quarter was up 105.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.60 earnings per share. Research analysts expect that Silicon Motion Technology Corporation will post 8.35 earnings per share for the current year.

Insider Activity at Silicon Motion Technology

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wolf Hill Capital Management LP bought a new stake in Silicon Motion Technology during the fourth quarter valued at approximately $53,893,000. Hawk Ridge Capital Management LP increased its stake in 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 worth $73,024,000 after purchasing an additional 415,000 shares during the period. Man Group plc increased its stake in Silicon Motion Technology by 820.7% in the 4th quarter. Man Group plc now owns 381,048 shares of the semiconductor producer’s stock worth $35,323,000 after buying an additional 339,663 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Silicon Motion Technology by 112.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer’s stock valued at $47,802,000 after acquiring an additional 225,221 shares in the last quarter. Finally, AIGH Capital Management LLC purchased a new stake in shares of Silicon Motion Technology in the 1st quarter worth $22,458,000. 78.02% of the stock is currently owned by hedge funds and other institutional investors.

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.