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

Silicon Motion Technology Co. (NASDAQ:SIMO) shares fell 5.1% 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 changed hands 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.

Several other research analysts have also weighed in on the company. Needham & Company LLC increased their target price on Silicon Motion Technology from $85.00 to $94.00 and gave the stock a “buy” rating in a research report on Monday, July 8th. StockNews.com raised Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Saturday. B. Riley lowered their price target on Silicon Motion Technology from $112.00 to $95.00 and set a “buy” rating for the company in a report on Monday, August 5th. Finally, Bank of America downgraded Silicon Motion Technology from a “buy” rating to an “underperform” rating and lowered their price target for the company from $90.00 to $60.00 in a report on Friday, August 16th. One equities research analyst has rated the stock with a sell rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $85.00.

Institutional Trading of Silicon Motion Technology

Several large investors have recently modified their holdings of the business. Acadian Asset Management LLC grew its stake in shares of Silicon Motion Technology by 161.5% during the first quarter. Acadian Asset Management LLC now owns 1,336,448 shares of the semiconductor producer’s stock valued at $102,779,000 after acquiring an additional 825,394 shares in the last quarter. Farallon Capital Management LLC grew its stake in shares of Silicon Motion Technology by 247.0% during the first quarter. Farallon Capital Management LLC now owns 855,449 shares of the semiconductor producer’s stock valued at $65,818,000 after acquiring an additional 608,949 shares in the last quarter. Millennium Management LLC grew its stake in shares of Silicon Motion Technology by 15.3% during the second quarter. Millennium Management LLC now owns 791,823 shares of the semiconductor producer’s stock valued at $64,130,000 after acquiring an additional 105,084 shares in the last quarter. Reinhart Partners LLC. grew its stake in shares of Silicon Motion Technology by 2.4% during the second quarter. Reinhart Partners LLC. now owns 754,017 shares of the semiconductor producer’s stock valued at $61,068,000 after acquiring an additional 17,646 shares in the last quarter. Finally, Kodai Capital Management LP acquired a new stake in shares of Silicon Motion Technology during the fourth quarter valued at about $44,073,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

Silicon Motion Technology Stock Up 1.1 %

The firm has a market capitalization of $1.90 billion, a price-to-earnings ratio of 32.10, a P/E/G ratio of 0.92 and a beta of 0.84. The stock has a 50 day moving average of $65.52 and a 200 day moving average of $73.34.

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

Silicon Motion Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 22nd. Investors 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 dividend on an annualized basis and a yield of 3.54%. Silicon Motion Technology’s dividend payout ratio (DPR) is 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.