Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down – Here’s Why

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $289.08, but opened at $277.33. Silicon Motion Technology shares last traded at $274.4550, with a volume of 38,926 shares.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Wedbush increased their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a report on Monday, June 22nd. Susquehanna boosted their price target on shares of Silicon Motion Technology from $175.00 to $275.00 and gave the company a “positive” rating in a report on Thursday, April 30th. B. Riley Financial reaffirmed a “buy” rating on shares of Silicon Motion Technology in a research report on Thursday, April 30th. Zacks Research upgraded shares of Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $246.43.

Silicon Motion Technology Stock Down 6.3%

The firm has a market cap of $9.19 billion, a PE ratio of 53.86, a price-to-earnings-growth ratio of 0.60 and a beta of 1.70. The stock has a 50 day moving average price of $290.99 and a two-hundred day moving average price of $192.17.

Silicon Motion Technology (NASDAQ:SIMO) last announced 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 firm had revenue of $342.11 million during the quarter, compared to analyst estimates of $299.53 million. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. Silicon Motion Technology’s revenue was up 105.5% on a year-over-year basis. During the same period last year, the firm posted $0.60 EPS. As a group, equities analysts anticipate that Silicon Motion Technology Corporation will post 8.48 earnings per share for the current year.

Insiders Place Their Bets

In other Silicon Motion Technology news, Director Kuan-Ming Lin sold 2,000 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $305.00, for a total value of $610,000.00. Following the completion of the transaction, the director owned 8,500 shares of the company’s stock, valued at approximately $2,592,500. This trade represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of Silicon Motion Technology stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $328.00, for a total transaction of $328,000.00. Following the sale, the director owned 7,500 shares of the company’s stock, valued at $2,460,000. The trade was a 11.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 4,000 shares of company stock valued at $1,239,250. Corporate insiders own 5.34% of the company’s stock.

Hedge Funds Weigh In On Silicon Motion Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Assetmark Inc. boosted its stake in shares of Silicon Motion Technology by 2.3% in the first quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer’s stock worth $316,000 after acquiring an additional 63 shares during the last quarter. Wedbush Securities Inc. raised its stake in Silicon Motion Technology by 1.7% in the 4th quarter. Wedbush Securities Inc. now owns 4,685 shares of the semiconductor producer’s stock valued at $434,000 after purchasing an additional 79 shares during the last quarter. NewEdge Wealth LLC raised its stake in Silicon Motion Technology by 3.6% in the 4th quarter. NewEdge Wealth LLC now owns 2,631 shares of the semiconductor producer’s stock valued at $244,000 after purchasing an additional 91 shares during the last quarter. Cooper Investors PTY Ltd. purchased a new position in Silicon Motion Technology in the 2nd quarter valued at $34,000. Finally, Ballentine Partners LLC lifted its holdings in Silicon Motion Technology by 2.8% in the 4th quarter. Ballentine Partners LLC now owns 4,006 shares of the semiconductor producer’s stock valued at $371,000 after purchasing an additional 110 shares in the last quarter. Hedge funds and other institutional investors 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.