Silicon Motion Technology (NASDAQ:SIMO) Shares Up 10.3% – Should You Buy?

Silicon Motion Technology Corporation (NASDAQ:SIMO) shot up 10.3% during trading on Monday . The stock traded as high as $332.88 and last traded at $336.6830. Approximately 431,468 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 850,576 shares. The stock had previously closed at $305.28.

Analyst Upgrades and Downgrades

SIMO has been the topic of several recent research reports. Wedbush upped their target price on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, June 22nd. JPMorgan Chase & Co. raised their price target on shares of Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. 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. Craig Hallum reaffirmed a “buy” rating and set a $250.00 price objective on shares of Silicon Motion Technology in a research report on Thursday, April 30th. Finally, Susquehanna increased their price objective on Silicon Motion Technology from $175.00 to $275.00 and gave the company a “positive” rating in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Silicon Motion Technology currently has a consensus rating of “Buy” and an average target price of $246.43.

Silicon Motion Technology Stock Up 0.4%

The stock has a 50-day moving average price of $259.77 and a 200 day moving average price of $166.85. The firm has a market capitalization of $11.30 billion, a price-to-earnings ratio of 66.27, a P/E/G ratio of 0.74 and a beta of 1.72.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.27. Silicon Motion Technology had a net margin of 16.02% and a return on equity of 20.24%. The firm had revenue of $342.11 million for the quarter, compared to analysts’ expectations of $299.53 million. During the same quarter last year, the company earned $0.60 earnings per share. The firm’s revenue was up 105.5% compared to the same quarter last year. As a group, equities analysts forecast that Silicon Motion Technology Corporation will post 8.35 earnings per share for the current fiscal year.

Insider Buying and Selling at Silicon Motion Technology

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SIMO. Assetmark Inc. raised its position in shares of Silicon Motion Technology by 2.3% during the 1st quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer’s stock worth $316,000 after acquiring an additional 63 shares in the last quarter. Wedbush Securities Inc. boosted its holdings in Silicon Motion Technology by 1.7% in the fourth 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 in the last quarter. NewEdge Wealth LLC increased its stake in Silicon Motion Technology by 3.6% in the fourth 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. Ballentine Partners LLC lifted its position in shares of Silicon Motion Technology by 2.8% during the 4th quarter. Ballentine Partners LLC now owns 4,006 shares of the semiconductor producer’s stock worth $371,000 after buying an additional 110 shares during the last quarter. Finally, Penn Capital Management Company LLC boosted its holdings in shares of Silicon Motion Technology by 2.3% in the 3rd quarter. Penn Capital Management Company LLC now owns 5,821 shares of the semiconductor producer’s stock valued at $552,000 after buying an additional 132 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.