Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 6.9% – Time to Sell?

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price was down 6.9% during trading on Monday . The stock traded as low as $301.11 and last traded at $303.8840. 78,757 shares were traded during trading, a decline of 91% from the average daily volume of 843,294 shares. The stock had previously closed at $326.35.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on SIMO. Weiss Ratings lowered shares of Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. B. Riley Financial restated a “buy” rating on shares of Silicon Motion Technology in a research note on Thursday, April 30th. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. Susquehanna boosted their price target on Silicon Motion Technology from $175.00 to $275.00 and gave the company a “positive” rating in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. increased their price objective on Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $246.43.

Silicon Motion Technology Stock Performance

The firm’s 50 day simple moving average is $285.03 and its 200 day simple moving average is $179.48. The firm has a market capitalization of $10.31 billion, a price-to-earnings ratio of 60.48, a PEG ratio of 0.72 and a beta of 1.70.

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

Insiders Place Their Bets

In related news, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total transaction 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the company’s 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 in the company, valued at approximately $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 4,000 shares of company stock valued at $1,239,250 over the last 90 days. 5.34% of the stock is currently owned by insiders.

Institutional Trading of Silicon Motion Technology

A number of hedge funds have recently modified their holdings of SIMO. Brown Brothers Harriman & Co. acquired a new stake in Silicon Motion Technology during the third quarter worth about $26,000. WealthCollab LLC raised its position in Silicon Motion Technology by 77.4% during the fourth quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer’s stock valued at $32,000 after acquiring an additional 151 shares in the last quarter. Cooper Investors PTY Ltd. acquired a new position in Silicon Motion Technology in the second quarter valued at approximately $34,000. Arax Advisory Partners lifted its holdings in Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock valued at $41,000 after acquiring an additional 307 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in Silicon Motion Technology by 169.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock worth $44,000 after purchasing an additional 366 shares in the last quarter. Hedge funds and other institutional investors own 78.02% of the company’s stock.

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.