Bank of America Lowers Silicon Motion Technology (NASDAQ:SIMO) to Underperform

Bank of America cut shares of Silicon Motion Technology (NASDAQ:SIMO) from a buy rating to an underperform rating in a report issued on Friday, Marketbeat.com reports. Bank of America currently has $60.00 price objective on the semiconductor producer’s stock, down from their prior price objective of $90.00.

Several other equities research analysts have also recently commented on the company. Needham & Company LLC boosted their price target on Silicon Motion Technology from $85.00 to $94.00 and gave the company a buy rating in a research note on Monday, July 8th. StockNews.com raised shares of Silicon Motion Technology from a hold rating to a buy rating in a research report on Friday, May 3rd. Morgan Stanley upgraded shares of Silicon Motion Technology from an equal weight rating to an overweight rating and raised their price target for the company from $59.00 to $88.00 in a report on Monday, May 6th. Craig Hallum upped their price objective on shares of Silicon Motion Technology from $80.00 to $96.00 and gave the stock a buy rating in a report on Monday, May 6th. Finally, B. Riley cut their target price on Silicon Motion Technology from $112.00 to $95.00 and set a buy rating on the stock in a report on Monday, August 5th. One analyst has rated the stock with a sell rating and nine have issued a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of Moderate Buy and an average price target of $87.56.

Silicon Motion Technology Stock Down 4.2 %

SIMO stock opened at $63.87 on Friday. The company has a 50 day moving average of $74.83 and a two-hundred day moving average of $74.46. The company has a market cap of $2.15 billion, a price-to-earnings ratio of 36.29, a PEG ratio of 0.57 and a beta of 0.86. Silicon Motion Technology has a 12-month low of $49.50 and a 12-month high of $85.87.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings data on Friday, August 2nd. The semiconductor producer reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.01. Silicon Motion Technology had a return on equity of 10.31% and a net margin of 10.14%. The business had revenue of $210.67 million during the quarter, compared to analyst estimates of $206.75 million. During the same period last year, the company earned $0.33 earnings per share. Silicon Motion Technology’s quarterly revenue was up 50.1% compared to the same quarter last year. On average, research analysts anticipate that Silicon Motion Technology will post 2.9 EPS for the current year.

Silicon Motion Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 22nd. Investors of record on Thursday, August 8th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Thursday, August 8th. This represents a $2.00 annualized dividend and a yield of 3.13%. Silicon Motion Technology’s payout ratio is 113.07%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Kodai Capital Management LP acquired a new stake in shares of Silicon Motion Technology in the fourth quarter worth $44,073,000. Caxton Associates LP acquired a new stake in Silicon Motion Technology in the 4th quarter worth $3,494,000. Keeley Teton Advisors LLC increased its holdings in shares of Silicon Motion Technology by 132.2% during the 4th quarter. Keeley Teton Advisors LLC now owns 20,875 shares of the semiconductor producer’s stock worth $1,279,000 after purchasing an additional 11,885 shares during the period. Lord Abbett & CO. LLC acquired a new position in shares of Silicon Motion Technology during the first quarter valued at about $53,676,000. Finally, Russell Investments Group Ltd. lifted its stake in shares of Silicon Motion Technology by 3,282.3% in the fourth quarter. Russell Investments Group Ltd. now owns 71,807 shares of the semiconductor producer’s stock valued at $4,386,000 after buying an additional 69,684 shares during the period. 78.02% of the stock is owned by 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.