Silicon Motion Technology (NASDAQ:SIMO) Trading Down 5.1% After Analyst Downgrade

Silicon Motion Technology Co. (NASDAQ:SIMO)’s share price fell 5.1% during mid-day trading on Monday after Morgan Stanley lowered their price target on the stock from $78.00 to $65.00. Morgan Stanley currently has an overweight rating on the stock. Silicon Motion Technology traded as low as $56.60 and last traded at $56.60. 49,004 shares were traded during mid-day trading, a decline of 88% from the average session volume of 400,031 shares. The stock had previously closed at $59.64.

A number of other research analysts also recently issued reports on SIMO. B. Riley reduced their price target on shares of Silicon Motion Technology from $112.00 to $95.00 and set a “buy” rating on the stock in a research report on Monday, August 5th. Bank of America downgraded shares of Silicon Motion Technology from a “buy” rating to an “underperform” rating and reduced their price target for the stock from $90.00 to $60.00 in a research report on Friday, August 16th. StockNews.com upgraded shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, Needham & Company LLC increased their price objective on shares of Silicon Motion Technology from $85.00 to $94.00 and gave the stock a “buy” rating in a report on Monday, July 8th. One investment analyst has rated the stock with a sell rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $85.00.

Institutional Trading of Silicon Motion Technology

A number of large investors have recently modified their holdings of the company. Inspire Advisors LLC increased its stake in Silicon Motion Technology by 1.9% during the 2nd quarter. Inspire Advisors LLC now owns 13,074 shares of the semiconductor producer’s stock valued at $1,059,000 after buying an additional 249 shares during the period. Sei Investments Co. increased its stake in Silicon Motion Technology by 0.5% during the 2nd quarter. Sei Investments Co. now owns 56,296 shares of the semiconductor producer’s stock valued at $4,559,000 after buying an additional 257 shares during the period. Parallel Advisors LLC increased its stake in Silicon Motion Technology by 154.9% during the 4th quarter. Parallel Advisors LLC now owns 548 shares of the semiconductor producer’s stock valued at $34,000 after buying an additional 333 shares during the period. Janney Montgomery Scott LLC increased its stake in Silicon Motion Technology by 0.5% during the 4th quarter. Janney Montgomery Scott LLC now owns 73,150 shares of the semiconductor producer’s stock valued at $4,482,000 after buying an additional 341 shares during the period. Finally, Assetmark Inc. increased its stake in Silicon Motion Technology by 34.5% during the 4th quarter. Assetmark Inc. now owns 1,332 shares of the semiconductor producer’s stock valued at $82,000 after buying an additional 342 shares during the period. Institutional investors and hedge funds own 78.02% of the company’s stock.

Silicon Motion Technology Stock Performance

The stock has a market cap of $1.88 billion, a price-to-earnings ratio of 31.77, a PEG ratio of 0.92 and a beta of 0.84. The company’s 50 day simple moving average is $65.99 and its 200 day simple moving average is $73.45.

Silicon Motion Technology (NASDAQ:SIMO) last released its earnings results on Friday, August 2nd. The semiconductor producer reported $0.96 EPS for the quarter, beating the consensus estimate of $0.95 by $0.01. The firm had revenue of $210.67 million for the quarter, compared to analysts’ expectations of $206.75 million. Silicon Motion Technology had a net margin of 10.14% and a return on equity of 10.31%. Silicon Motion Technology’s quarterly revenue was up 50.1% on a year-over-year basis. During the same quarter last year, the company earned $0.33 EPS. Sell-side analysts predict that Silicon Motion Technology Co. will post 2.86 EPS for the current year.

Silicon Motion Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 22nd. Stockholders of record on Thursday, August 8th were paid a $0.50 dividend. The ex-dividend date was Thursday, August 8th. This represents a $2.00 annualized dividend and a dividend yield of 3.58%. Silicon Motion Technology’s dividend payout ratio is currently 113.07%.

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.