Silicon Motion Technology (NASDAQ:SIMO) Shares Down 3% – Here’s Why

Silicon Motion Technology Co. (NASDAQ:SIMO) shares were down 3% during trading on Thursday . The stock traded as low as $53.23 and last traded at $53.51. Approximately 28,362 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 369,673 shares. The stock had previously closed at $55.18.

Analysts Set New Price Targets

A number of research analysts recently issued reports on SIMO shares. Craig Hallum cut their price target on Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating for the company in a report on Thursday, October 31st. Wedbush reaffirmed an “outperform” rating and set a $90.00 price objective on shares of Silicon Motion Technology in a report on Wednesday, October 2nd. Needham & Company LLC decreased their price target on Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating on the stock in a report on Friday, November 1st. StockNews.com upgraded Silicon Motion Technology from a “hold” rating to a “buy” rating in a report on Thursday. Finally, Roth Mkm reduced their target price 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. One research analyst has rated the stock with a sell rating and nine have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $81.67.

Silicon Motion Technology Stock Performance

The stock’s 50 day simple moving average is $55.22 and its 200 day simple moving average is $64.06. The firm has a market cap of $1.82 billion, a P/E ratio of 20.42, a price-to-earnings-growth ratio of 1.61 and a beta of 0.82.

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

Silicon Motion Technology Dividend Announcement

The business also recently disclosed 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 was Thursday, November 14th. This represents a $2.00 annualized dividend and a yield of 3.71%. Silicon Motion Technology’s payout ratio is currently 75.76%.

Institutional Investors Weigh In On Silicon Motion Technology

Several institutional investors have recently added to or reduced their stakes in SIMO. Advisors Asset Management Inc. grew its stake in shares of Silicon Motion Technology by 129.4% in the third quarter. Advisors Asset Management Inc. now owns 445 shares of the semiconductor producer’s stock worth $27,000 after purchasing an additional 251 shares during the last quarter. Blue Trust Inc. lifted its holdings in Silicon Motion Technology by 3,971.4% in the second quarter. Blue Trust Inc. now owns 570 shares of the semiconductor producer’s stock worth $44,000 after buying an additional 556 shares during the period. Headlands Technologies LLC purchased a new position in shares of Silicon Motion Technology during the 2nd quarter worth approximately $139,000. Van ECK Associates Corp bought a new stake in shares of Silicon Motion Technology during the third quarter valued at approximately $151,000. Finally, XTX Topco Ltd purchased a new position in Silicon Motion Technology during the second quarter valued at $220,000. 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.