Silicon Motion Technology (NASDAQ:SIMO) Stock Price Passes Above 200 Day Moving Average – Should You Sell?

Silicon Motion Technology Co. (NASDAQ:SIMO)’s share price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $55.56 and traded as high as $57.25. Silicon Motion Technology shares last traded at $56.58, with a volume of 1,108,580 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SIMO shares. Wedbush reissued an “outperform” rating and set a $90.00 price objective on shares of Silicon Motion Technology in a research report on Monday, December 23rd. Needham & Company LLC restated a “buy” rating and set a $70.00 target price on shares of Silicon Motion Technology in a research report on Friday, February 7th. Finally, StockNews.com cut shares of Silicon Motion Technology from a “buy” rating to a “hold” rating in a research report on Thursday, February 13th. One research analyst has rated the stock with a sell rating, one has given a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $80.63.

Silicon Motion Technology Price Performance

The business’s 50-day moving average price is $54.06 and its 200 day moving average price is $55.56. The firm has a market capitalization of $1.88 billion, a price-to-earnings ratio of 20.74, a PEG ratio of 1.36 and a beta of 0.71.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.10). Silicon Motion Technology had a return on equity of 11.63% and a net margin of 11.29%. As a group, sell-side analysts expect that Silicon Motion Technology Co. will post 3.08 earnings per share for the current year.

Silicon Motion Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Thursday, February 13th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 3.58%. The ex-dividend date of this dividend was Thursday, February 13th. Silicon Motion Technology’s payout ratio is 74.35%.

Silicon Motion Technology announced that its board has initiated a share repurchase program on Wednesday, February 5th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the semiconductor producer to repurchase up to 2.6% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Silicon Motion Technology

Hedge funds have recently made changes to their positions in the stock. Advisors Asset Management Inc. grew its holdings in Silicon Motion Technology by 129.4% during the third quarter. Advisors Asset Management Inc. now owns 445 shares of the semiconductor producer’s stock valued at $27,000 after purchasing an additional 251 shares during the last quarter. GAMMA Investing LLC grew its holdings in Silicon Motion Technology by 123.2% during the fourth quarter. GAMMA Investing LLC now owns 877 shares of the semiconductor producer’s stock valued at $47,000 after purchasing an additional 484 shares during the last quarter. Menard Financial Group LLC acquired a new position in Silicon Motion Technology during the fourth quarter valued at approximately $88,000. Blue Trust Inc. grew its holdings in Silicon Motion Technology by 64.7% during the fourth quarter. Blue Trust Inc. now owns 2,248 shares of the semiconductor producer’s stock valued at $122,000 after purchasing an additional 883 shares during the last quarter. Finally, LRI Investments LLC grew its holdings in Silicon Motion Technology by 519.0% during the fourth quarter. LRI Investments LLC now owns 3,033 shares of the semiconductor producer’s stock valued at $164,000 after purchasing an additional 2,543 shares during the last quarter. 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.