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

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 traded.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. 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 note on Thursday, October 31st. Morgan Stanley lowered their target price on Silicon Motion Technology from $78.00 to $65.00 and set an “overweight” rating on the stock in a research note on Monday, September 16th. Susquehanna lowered their target price on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating on the stock in a research note on Friday, November 1st. Wedbush reiterated an “outperform” rating and issued a $90.00 target price on shares of Silicon Motion Technology in a research note on Wednesday, October 2nd. Finally, Needham & Company LLC lowered their target price on Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating on the stock in a research note on Friday, November 1st. One research analyst has rated the stock with a sell rating and nine have given a buy rating to the company. According to data from MarketBeat.com, Silicon Motion Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $81.67.

Silicon Motion Technology Stock Performance

The firm has a fifty day moving average price of $56.00 and a 200 day moving average price of $65.70. The firm has a market capitalization of $1.89 billion, a price-to-earnings ratio of 21.29, a PEG ratio of 1.55 and a beta of 0.82.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings results on Wednesday, October 30th. The semiconductor producer reported $0.92 EPS for the quarter, beating the consensus estimate of $0.85 by $0.07. The business had revenue of $212.40 million during the quarter, compared to analysts’ expectations 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 period last year, the firm earned $0.32 EPS. Research analysts predict that Silicon Motion Technology Co. will post 2.59 earnings per share for the current fiscal year.

Silicon Motion Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 14th were issued a dividend of $0.50 per share. 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 presently 75.38%.

Hedge Funds Weigh In On Silicon Motion Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the company. FMR LLC raised its holdings in Silicon Motion Technology by 27.7% during the third quarter. FMR LLC now owns 2,239,574 shares of the semiconductor producer’s stock worth $136,032,000 after purchasing an additional 485,862 shares during the last quarter. Reinhart Partners LLC. increased its position in Silicon Motion Technology by 43.3% during the third quarter. Reinhart Partners LLC. now owns 1,080,375 shares of the semiconductor producer’s stock worth $65,622,000 after buying an additional 326,358 shares in the last quarter. Millennium Management LLC increased its position in Silicon Motion Technology by 15.3% during the second quarter. Millennium Management LLC now owns 791,823 shares of the semiconductor producer’s stock worth $64,130,000 after buying an additional 105,084 shares in the last quarter. Erste Asset Management GmbH purchased a new position in Silicon Motion Technology during the third quarter worth $40,331,000. Finally, The Manufacturers Life Insurance Company increased its position in Silicon Motion Technology by 36.4% during the third quarter. The Manufacturers Life Insurance Company now owns 570,816 shares of the semiconductor producer’s stock worth $34,671,000 after buying an additional 152,467 shares in the last quarter. 78.02% of the stock is owned by institutional investors and hedge funds.

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.