Silicon Motion Technology (NASDAQ:SIMO) Stock Price Down 13.6% – Here’s What Happened

Silicon Motion Technology Corporation (NASDAQ:SIMO) shares traded down 13.6% on Wednesday. The stock traded as low as $176.89 and last traded at $174.46. 353,763 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 889,294 shares. The stock had previously closed at $201.90.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on SIMO. Wall Street Zen lowered shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. Susquehanna raised their price objective on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a report on Friday, July 31st. Needham & Company LLC lifted their price objective on shares of Silicon Motion Technology from $240.00 to $355.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Craig Hallum reiterated a “buy” rating and issued a $325.00 price objective on shares of Silicon Motion Technology in a research note on Friday, July 31st. Finally, B. Riley Financial reissued a “buy” rating and set a $310.00 target price (up from $288.00) on shares of Silicon Motion Technology in a report on Friday, October 30th. Ten analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $331.25.

Silicon Motion Technology Price Performance

The business has a fifty day moving average of $246.60 and a 200-day moving average of $214.35. The company has a current ratio of 5.68, a quick ratio of 3.65 and a debt-to-equity ratio of 1.00. The firm has a market cap of $6.09 billion, a PE ratio of 19.40, a PEG ratio of 0.35 and a beta of 1.78.

Silicon Motion Technology (NASDAQ:SIMO) last posted its earnings results on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share for the quarter, beating analysts’ consensus estimates of $3.30 by $1.05. Silicon Motion Technology had a return on equity of 32.29% and a net margin of 19.36%. The business had revenue of $560.22 million during the quarter, compared to analyst estimates of $529.10 million. During the same quarter in the previous year, the firm earned $1.00 EPS. The company’s quarterly revenue was up 131.5% compared to the same quarter last year. As a group, research analysts predict that Silicon Motion Technology Corporation will post 10.01 earnings per share for the current year.

Silicon Motion Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be given a $0.5750 dividend. This represents a $2.30 dividend on an annualized basis and a dividend yield of 1.3%. This is an increase from Silicon Motion Technology’s previous quarterly dividend of $0.50. The ex-dividend date is Thursday, November 5th. Silicon Motion Technology’s dividend payout ratio (DPR) is 21.44%.

Hedge Funds Weigh In On Silicon Motion Technology

Hedge funds have recently bought and sold shares of the company. Cooper Investors PTY Ltd. bought a new position in Silicon Motion Technology in the 2nd quarter valued at $34,000. Reyes Financial Architecture Inc. purchased a new position in shares of Silicon Motion Technology during the 3rd quarter valued at $58,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Silicon Motion Technology during the 2nd quarter valued at $88,000. EverSource Wealth Advisors LLC increased its holdings in shares of Silicon Motion Technology by 78.9% in the first quarter. EverSource Wealth Advisors LLC now owns 1,159 shares of the semiconductor producer’s stock worth $130,000 after purchasing an additional 511 shares during the period. Finally, IFP Advisors Inc bought a new position in shares of Silicon Motion Technology in the second quarter worth $162,000. Hedge funds and other 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.