Zacks Investment Research upgraded shares of Silicon Motion Technology (NASDAQ:SIMO) from a sell rating to a hold rating in a report issued on Thursday morning.
According to Zacks, “Silicon Motion is a leading merchant supplier of client SSD controller to module makers, including most market leaders in the U.S., Taiwan and China. The company’s collaborations with flash vendors with the aim of developing proprietary controller technology aids it to overcome existing weakness of 3D NAND and outshine peers. Further, the company expects the increase in the availability of 64 layer 3D NAND to bring down high NAND prices, which will eventually improve results. Moreover, an expanding customer base and innovative products act as tailwinds for the company’s top-line growth. Acquisitions in the past have also contributed to it’s overall growth. However, intensifying competition in the USB flash drive controller market remains a headwind. Anticipated dip in smartphones sales might prove to be a drag on the revenues.”
A number of other research analysts also recently issued reports on the company. BidaskClub downgraded Silicon Motion Technology from a buy rating to a hold rating in a report on Friday, February 9th. KeyCorp reaffirmed a buy rating and set a $54.00 price target on shares of Silicon Motion Technology in a report on Wednesday, February 7th. Needham & Company LLC reaffirmed a buy rating and set a $57.00 price target on shares of Silicon Motion Technology in a report on Wednesday, January 17th. B. Riley reaffirmed a buy rating and set a $68.75 price target on shares of Silicon Motion Technology in a report on Tuesday, January 16th. Finally, Susquehanna Bancshares reaffirmed a neutral rating and set a $48.00 price target (down from $60.00) on shares of Silicon Motion Technology in a report on Tuesday, January 16th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and twelve have issued a buy rating to the company. The stock has an average rating of Buy and an average target price of $56.70.
Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings results on Tuesday, February 6th. The semiconductor producer reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.21). The business had revenue of $136.17 million for the quarter, compared to the consensus estimate of $135.00 million. Silicon Motion Technology had a net margin of 14.34% and a return on equity of 15.33%. equities analysts predict that Silicon Motion Technology will post 2.97 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 22nd. Shareholders of record on Thursday, August 9th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 2.54%. The ex-dividend date of this dividend is Wednesday, August 8th. Silicon Motion Technology’s dividend payout ratio is 47.60%.
Hedge funds have recently bought and sold shares of the business. Daiwa Securities Group Inc. bought a new position in Silicon Motion Technology in the third quarter valued at about $101,000. Castleark Management LLC bought a new position in Silicon Motion Technology in the fourth quarter valued at about $148,000. EP Wealth Advisors LLC bought a new position in Silicon Motion Technology in the fourth quarter valued at about $233,000. Boothbay Fund Management LLC bought a new position in Silicon Motion Technology in the third quarter valued at about $251,000. Finally, Brown Advisory Inc. lifted its holdings in Silicon Motion Technology by 42.3% in the third quarter. Brown Advisory Inc. now owns 10,559 shares of the semiconductor producer’s stock valued at $507,000 after acquiring an additional 3,140 shares during the period. 85.87% of the stock is currently owned by institutional investors.
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Silicon Motion Technology Company Profile
Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices.
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