Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Up – Should You Buy?

Silicon Motion Technology Co. (NASDAQ:SIMO)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $53.95, but opened at $57.94. Silicon Motion Technology shares last traded at $57.16, with a volume of 9,062 shares trading hands.

Analyst Ratings Changes

A number of research firms have recently issued reports on SIMO. Bank of America cut shares of Silicon Motion Technology from a “buy” rating to an “underperform” rating and reduced their target price for the stock from $90.00 to $60.00 in a research report on Friday, August 16th. Craig Hallum dropped their price target on Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. Wedbush reaffirmed an “outperform” rating and set a $90.00 target price on shares of Silicon Motion Technology in a research note on Wednesday, October 2nd. Roth Mkm reduced their price target on shares of Silicon Motion Technology from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Tuesday, October 8th. Finally, Susquehanna decreased their target price on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research note on Friday, November 1st. One analyst has rated the stock with a sell rating and nine have given a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $81.67.

Silicon Motion Technology Stock Down 1.8 %

The company has a market cap of $1.89 billion, a price-to-earnings ratio of 21.65, a PEG ratio of 1.47 and a beta of 0.82. The business has a 50-day simple moving average of $56.12 and a two-hundred day simple moving average of $65.84.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings results on Wednesday, October 30th. The semiconductor producer reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.07. Silicon Motion Technology had a net margin of 10.90% and a return on equity of 11.52%. The company had revenue of $212.40 million during the quarter, compared to analysts’ expectations of $209.49 million. During the same period in the prior year, the company earned $0.32 earnings per share. The business’s quarterly revenue was up 23.3% compared to the same quarter last year. As a group, equities analysts anticipate that Silicon Motion Technology Co. will post 2.59 earnings per share for the current year.

Silicon Motion Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 14th were given a $0.50 dividend. The ex-dividend date of this dividend was Thursday, November 14th. This represents a $2.00 annualized dividend and a yield of 3.56%. Silicon Motion Technology’s dividend payout ratio is 75.38%.

Institutional Trading of Silicon Motion Technology

Several institutional investors have recently modified their holdings of the company. Oddo BHF Asset Management Sas acquired a new stake in Silicon Motion Technology in the 3rd quarter valued at $13,211,000. Geode Capital Management LLC boosted its position in Silicon Motion Technology by 0.7% in the third quarter. Geode Capital Management LLC now owns 35,948 shares of the semiconductor producer’s stock valued at $2,183,000 after buying an additional 253 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in Silicon Motion Technology during the third quarter worth about $5,904,000. Y Intercept Hong Kong Ltd increased its holdings in shares of Silicon Motion Technology by 23.3% during the third quarter. Y Intercept Hong Kong Ltd now owns 10,378 shares of the semiconductor producer’s stock worth $630,000 after buying an additional 1,960 shares in the last quarter. Finally, XTX Topco Ltd raised its stake in shares of Silicon Motion Technology by 73.9% in the third quarter. XTX Topco Ltd now owns 4,715 shares of the semiconductor producer’s stock valued at $286,000 after acquiring an additional 2,003 shares during the last quarter. Institutional investors and hedge funds 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.