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

Silicon Motion Technology Co. (NASDAQ:SIMO) shares gapped down prior to trading on Tuesday . The stock had previously closed at $55.81, but opened at $53.70. Silicon Motion Technology shares last traded at $53.70, with a volume of 114 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Craig Hallum reduced their price objective on shares of Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. Wedbush reissued an “outperform” rating and issued a $90.00 price target on shares of Silicon Motion Technology in a research report on Wednesday, October 2nd. Roth Mkm dropped their price objective on Silicon Motion Technology from $90.00 to $80.00 and set a “buy” rating on the stock in a research report on Tuesday, October 8th. Morgan Stanley reduced their target price on shares of Silicon Motion Technology from $78.00 to $65.00 and set an “overweight” rating for the company in a report on Monday, September 16th. Finally, StockNews.com downgraded shares of Silicon Motion Technology from a “buy” rating to a “hold” rating in a research report on Monday, November 4th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and eight have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $81.67.

Silicon Motion Technology Stock Performance

The stock’s 50 day simple moving average is $56.24 and its 200-day simple moving average is $66.52. The firm has a market cap of $1.77 billion, a price-to-earnings ratio of 19.86, a price-to-earnings-growth ratio of 1.52 and a beta of 0.84.

Silicon Motion Technology (NASDAQ:SIMO) last released its earnings results on Wednesday, October 30th. The semiconductor producer reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.07. The firm had revenue of $212.40 million for the quarter, compared to the consensus estimate of $209.49 million. Silicon Motion Technology had a return on equity of 11.52% and a net margin of 10.90%. The firm’s revenue was up 23.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.32 EPS. On average, analysts expect that Silicon Motion Technology Co. will post 2.59 EPS for the current fiscal year.

Silicon Motion Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Investors 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 dividend on an annualized basis and a yield of 3.81%. Silicon Motion Technology’s dividend payout ratio is currently 75.38%.

Hedge Funds Weigh In On Silicon Motion Technology

Institutional investors have recently bought and sold shares of the business. Advisors Asset Management Inc. increased 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 acquiring an additional 251 shares during the period. Blue Trust Inc. grew its position in Silicon Motion Technology by 3,971.4% during the 2nd quarter. Blue Trust Inc. now owns 570 shares of the semiconductor producer’s stock worth $44,000 after purchasing an additional 556 shares during the period. Headlands Technologies LLC acquired a new stake in Silicon Motion Technology during the 2nd quarter worth about $139,000. LRI Investments LLC purchased a new position in shares of Silicon Motion Technology during the 1st quarter valued at about $150,000. Finally, Van ECK Associates Corp acquired a new position in shares of Silicon Motion Technology in the 3rd quarter valued at about $151,000. 78.02% of the stock is owned by hedge funds and other institutional investors.

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.