Silicon Motion Technology (NASDAQ:SIMO) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Silicon Motion Technology (NASDAQ:SIMO) from a hold rating to a buy rating in a research note released on Monday morning, Zacks.com reports. Zacks Investment Research currently has $50.00 price objective on the semiconductor producer’s stock.

According to Zacks, “Silicon Motion is benefiting from robust demand for its solid state drive (SSD) controllers. Growing adoption of embedded memory controllers amid uptick in smartphone sales, is a positive. Increased PC sales triggered by online learning and work-from-home wave, hold promise. Further, new design wins for PCIe Gen4 SSD controllers, from NAND makers, bode well. Recently, the company announced upbeat preliminary results for Q4. Fourth-quarter revenues are likely to reflect gains from recovery in sales of eMMC and UFS controllers and continued momentum in SSD controller sales. However, coronavirus crisis-led production delays and supply chain constraints are anticipated to hinder near-term prospects. Stiff competition in the USB flash drive controller market is likely to impede growth. Shares have underperformed the industry in the past year.”

A number of other research firms also recently issued reports on SIMO. ValuEngine upgraded shares of Silicon Motion Technology from a sell rating to a hold rating in a research report on Monday, December 7th. BidaskClub raised shares of Silicon Motion Technology from a sell rating to a hold rating in a report on Tuesday, December 8th. Wedbush raised shares of Silicon Motion Technology from a neutral rating to an outperform rating and increased their price objective for the stock from $42.00 to $46.00 in a report on Thursday, September 24th. B. Riley increased their price objective on shares of Silicon Motion Technology from $54.00 to $55.00 and gave the stock a buy rating in a report on Friday, January 8th. Finally, Needham & Company LLC reaffirmed a buy rating and issued a $55.00 price objective on shares of Silicon Motion Technology in a report on Wednesday, October 7th. Five equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The company currently has an average rating of Buy and an average target price of $51.60.

SIMO opened at $49.43 on Monday. The company has a fifty day simple moving average of $45.01 and a 200 day simple moving average of $41.23. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of 20.68, a PEG ratio of 2.02 and a beta of 1.13. Silicon Motion Technology has a twelve month low of $26.72 and a twelve month high of $53.04.

Silicon Motion Technology (NASDAQ:SIMO) last released its quarterly earnings results on Saturday, November 7th. The semiconductor producer reported $0.76 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.67 by $0.09. Silicon Motion Technology had a net margin of 15.71% and a return on equity of 14.91%. The business had revenue of $126.04 million during the quarter, compared to analyst estimates of $120.67 million. During the same period last year, the business earned $0.69 EPS. The business’s revenue was up 14.0% on a year-over-year basis. Analysts forecast that Silicon Motion Technology will post 2.54 earnings per share for the current year.

Several institutional investors and hedge funds have recently made changes to their positions in SIMO. Pinnacle Bank grew its stake in shares of Silicon Motion Technology by 397.2% in the 3rd quarter. Pinnacle Bank now owns 706 shares of the semiconductor producer’s stock worth $27,000 after purchasing an additional 564 shares during the last quarter. Captrust Financial Advisors acquired a new position in shares of Silicon Motion Technology in the 2nd quarter worth approximately $29,000. Liberty Wealth Management LLC grew its stake in shares of Silicon Motion Technology by 165.6% in the 3rd quarter. Liberty Wealth Management LLC now owns 802 shares of the semiconductor producer’s stock worth $30,000 after purchasing an additional 500 shares during the last quarter. Freestone Capital Holdings LLC acquired a new position in shares of Silicon Motion Technology in the 3rd quarter worth approximately $47,000. Finally, Bank of Montreal Can grew its stake in shares of Silicon Motion Technology by 259.6% in the 2nd quarter. Bank of Montreal Can now owns 3,301 shares of the semiconductor producer’s stock worth $145,000 after purchasing an additional 2,383 shares during the last quarter. 69.75% of the stock is currently 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. It offers solid-state drive (SSDs) used in PCs and other devices, as well as embedded multimediacard (eMMC) and UFS mobile embedded storage used in smartphones.

Further Reading: Backdoor Roth IRA Conversion and Strategy

Get a free copy of the Zacks research report on Silicon Motion Technology (SIMO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Silicon Motion Technology (NASDAQ:SIMO)

Receive News & Ratings for Silicon Motion Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Silicon Motion Technology and related companies with MarketBeat.com's FREE daily email newsletter.