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

Shares of Silicon Motion Technology Co. (NASDAQ:SIMO) passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred 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 changing hands.

Analyst Upgrades and Downgrades

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

Silicon Motion Technology Stock Up 3.9 %

The company has a market cap of $1.91 billion, a price-to-earnings ratio of 21.03, a price-to-earnings-growth ratio of 1.36 and a beta of 0.71. The firm has a 50-day simple moving average of $54.04 and a 200 day simple moving average of $55.56.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 EPS for the quarter, missing the consensus estimate 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, research analysts expect that Silicon Motion Technology Co. will post 3.08 EPS for the current year.

Silicon Motion Technology Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Thursday, February 13th were paid a $0.50 dividend. The ex-dividend date of this dividend was Thursday, February 13th. This represents a $2.00 annualized dividend and a dividend yield of 3.53%. Silicon Motion Technology’s dividend payout ratio (DPR) is currently 74.35%.

Silicon Motion Technology declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, February 5th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the semiconductor producer to purchase up to 2.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SIMO. Oppenheimer Asset Management Inc. grew its stake in shares of Silicon Motion Technology by 15.7% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 5,215 shares of the semiconductor producer’s stock valued at $317,000 after purchasing an additional 707 shares during the last quarter. Advisors Asset Management Inc. grew its stake in shares of Silicon Motion Technology by 129.4% in the 3rd 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. Cerity Partners LLC purchased a new stake in shares of Silicon Motion Technology in the third quarter valued at approximately $1,826,000. The Manufacturers Life Insurance Company boosted its stake in shares of Silicon Motion Technology by 36.4% in the third quarter. The Manufacturers Life Insurance Company now owns 570,816 shares of the semiconductor producer’s stock valued at $34,671,000 after buying an additional 152,467 shares in the last quarter. Finally, FMR LLC boosted its stake in shares of Silicon Motion Technology by 27.7% in the third quarter. FMR LLC now owns 2,239,574 shares of the semiconductor producer’s stock valued at $136,032,000 after buying an additional 485,862 shares in the last quarter. 78.02% of the stock is currently owned by hedge funds and other institutional investors.

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.