Silicon Motion Technology (NASDAQ:SIMO) Announces Earnings Results, Beats Estimates By $0.30 EPS

Silicon Motion Technology (NASDAQ:SIMO) announced its earnings results on Wednesday. The semiconductor producer reported $2.43 EPS for the quarter, topping the consensus estimate of $2.13 by $0.30, Briefing.com reports. The company had revenue of $451.00 million during the quarter, compared to analysts’ expectations of $403.41 million. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 33.82%. The business’s revenue for the quarter was up 127.0% on a year-over-year basis. During the same period last year, the company posted $0.69 earnings per share.

Silicon Motion Technology Trading Up 2.5%

Silicon Motion Technology stock traded up $6.45 during trading hours on Friday, reaching $261.55. 418,939 shares of the company were exchanged, compared to its average volume of 859,387. Silicon Motion Technology has a 12 month low of $71.35 and a 12 month high of $355.00. The stock has a 50-day moving average of $289.32 and a 200 day moving average of $196.24. The firm has a market cap of $8.87 billion, a price-to-earnings ratio of 30.69, a PEG ratio of 0.46 and a beta of 1.70.

Trending Headlines about Silicon Motion Technology

Here are the key news stories impacting Silicon Motion Technology this week:

• Positive Sentiment: Strong Q2 beat: Revenue rose 127% year over year and 32% sequentially to $451 million, exceeding the $403.4 million consensus estimate. Non-GAAP earnings of $2.43 per diluted ADS also topped expectations of $2.13. Gross margin expanded to 50.2%, while non-GAAP operating margin reached 23.1%. Silicon Motion Technology Q2 earnings and guidance
• Positive Sentiment: Upbeat outlook: Management forecast third-quarter revenue of $519 million to $541 million, representing 15% to 20% sequential growth and substantially exceeding the roughly $428 million analyst estimate. Non-GAAP gross margin is expected at 50% to 51%, with operating margin of 27.5% to 28.5%. The company said it remains on track for more than 100% annual revenue growth. Silicon Motion Q3 revenue outlook
• Positive Sentiment: AI and automotive expansion: Silicon Motion and MediaTek are collaborating on storage solutions for next-generation AI-ready vehicles, supporting the company’s strategy to expand beyond consumer NAND controllers into automotive, enterprise and AI infrastructure markets. Silicon Motion and MediaTek AI-ready vehicle storage
• Positive Sentiment: Analyst support: Susquehanna raised its price target from $275 to $350 and Needham increased its target from $240 to $355, with both firms maintaining positive or buy-equivalent ratings. Wedbush also said the results show SIMO is “executing on all fronts.” Wedbush commentary on Silicon Motion
• Negative Sentiment: Risks remain: Management cited NAND pricing and supply headwinds in consumer businesses. Inventory increased substantially, operating expenses rose, and operating cash flow was negative in the quarter, issues investors will monitor as growth accelerates.

Insider Buying and Selling at Silicon Motion Technology

In other news, Director Kuan-Ming Lin sold 2,000 shares of Silicon Motion Technology stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total value of $610,000.00. Following the transaction, the director directly owned 8,500 shares in the company, valued at approximately $2,592,500. The trade was a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Han-Ping Shieh sold 1,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total value of $328,000.00. Following the sale, the director owned 7,500 shares of the company’s stock, valued at approximately $2,460,000. The trade was a 11.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 4,000 shares of company stock worth $1,239,250 in the last quarter. Insiders own 5.34% of the company’s stock.

Hedge Funds Weigh In On Silicon Motion Technology

Several large investors have recently bought and sold shares of the stock. Brown Brothers Harriman & Co. bought a new position in shares of Silicon Motion Technology during the 3rd quarter worth about $26,000. Arax Advisory Partners lifted its stake in shares of Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock valued at $41,000 after buying an additional 307 shares during the period. EverSource Wealth Advisors LLC grew its position in Silicon Motion Technology by 169.4% during the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock worth $44,000 after buying an additional 366 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in Silicon Motion Technology during the second quarter worth about $75,000. Finally, NewEdge Advisors LLC bought a new position in Silicon Motion Technology during the third quarter valued at about $79,000. 78.02% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have weighed in on SIMO. Roth Capital reiterated a “buy” rating and set a $350.00 price objective on shares of Silicon Motion Technology in a research report on Thursday. Wall Street Zen cut Silicon Motion Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. Wedbush lifted their price target on Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a report on Monday, June 22nd. Craig Hallum reissued a “buy” rating and set a $250.00 price target on shares of Silicon Motion Technology in a research report on Thursday, April 30th. Finally, Zacks Research raised Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Silicon Motion Technology currently has a consensus rating of “Buy” and a consensus target price of $300.00.

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.