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

Silicon Motion Technology Corporation (NASDAQ:SIMO) gapped up before the market opened on Tuesday . The stock had previously closed at $252.61, but opened at $269.95. Silicon Motion Technology shares last traded at $266.42, with a volume of 55,835 shares changing hands.

Analysts Set New Price Targets

A number of research analysts recently weighed in on SIMO shares. Wall Street Zen lowered shares of Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Weiss Ratings downgraded shares of Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. Wedbush increased their price objective on shares of Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a research report on Monday, June 22nd. JPMorgan Chase & Co. upped their target price 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. Finally, Roth Capital restated a “buy” rating and set a $250.00 target price on shares of Silicon Motion Technology in a research report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $246.43.

Silicon Motion Technology Price Performance

The business has a 50-day moving average of $290.26 and a two-hundred day moving average of $190.24. The company has a market cap of $9.55 billion, a P/E ratio of 56.00, a P/E/G ratio of 0.61 and a beta of 1.70.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Tuesday, April 28th. The semiconductor producer reported $1.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.27. The company had revenue of $342.11 million during the quarter, compared to analyst estimates of $299.53 million. Silicon Motion Technology had a return on equity of 20.24% and a net margin of 16.02%.The firm’s quarterly revenue was up 105.5% on a year-over-year basis. During the same quarter last year, the business posted $0.60 EPS. Equities analysts anticipate that Silicon Motion Technology Corporation will post 8.48 EPS for the current fiscal year.

Insider Buying and Selling

In other Silicon Motion Technology news, Director Kuan-Ming Lin sold 2,000 shares of the company’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 directly owned 8,500 shares in the company, valued at approximately $2,592,500. This represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the firm’s 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 owned 7,500 shares in the company, valued at $2,460,000. The trade was a 11.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,000 shares of company stock worth $1,239,250 in the last quarter. Insiders own 5.34% of the company’s stock.

Hedge Funds Weigh In On Silicon Motion Technology

A number of large investors have recently bought and sold shares of SIMO. Assetmark Inc. grew its stake in shares of Silicon Motion Technology by 2.3% during the first quarter. Assetmark Inc. now owns 2,814 shares of the semiconductor producer’s stock valued at $316,000 after acquiring an additional 63 shares in the last quarter. Wedbush Securities Inc. raised its position in shares of Silicon Motion Technology by 1.7% during the 4th quarter. Wedbush Securities Inc. now owns 4,685 shares of the semiconductor producer’s stock worth $434,000 after purchasing an additional 79 shares during the period. NewEdge Wealth LLC increased its position 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 worth $244,000 after buying an additional 91 shares during the period. Cooper Investors PTY Ltd. acquired a new position in shares of Silicon Motion Technology during the second quarter valued at $34,000. Finally, Ballentine Partners LLC boosted its holdings in shares of Silicon Motion Technology by 2.8% during the fourth quarter. Ballentine Partners LLC now owns 4,006 shares of the semiconductor producer’s stock valued at $371,000 after acquiring an additional 110 shares during the period. 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.