Needham & Company LLC Reiterates Buy Rating for Silicon Motion Technology (SIMO)

Silicon Motion Technology (NASDAQ:SIMO)‘s stock had its “buy” rating reissued by stock analysts at Needham & Company LLC in a report released on Friday. They presently have a $58.00 price target on the semiconductor producer’s stock. Needham & Company LLC’s price target would suggest a potential upside of 61.83% from the company’s current price.

The analysts wrote, “Shares reacted positively on Wednesday’s announcement, climbing 11.5% on the news of the company’s new $200MM stock buyback authorization. While SIMO didn’t utilize its previous $200MM stock buyback last year – the stock price hovered around $45-$60 levels — we think the company will actively buy shares under the new authorization given the stock’s 24% decline thus far in November and underperformance YTD (down 39% vs SOX down 6%). Theoretically, SIMO could reduce its share count by 15% and add $0.60-$0.67 to next year’s earnings (on the same level of net income). Stock is currently trading at trough P/E ex-cash multiple of 7.3x on 2019 estimates.””

A number of other equities analysts also recently issued reports on the company. Zacks Investment Research reissued a “sell” rating on shares of Silicon Motion Technology in a research note on Thursday, November 15th. ValuEngine raised Silicon Motion Technology from a “sell” rating to a “hold” rating in a research note on Friday, November 2nd. B. Riley dropped their price objective on Silicon Motion Technology from $68.75 to $57.00 and set a “buy” rating for the company in a research note on Thursday, November 1st. Lake Street Capital set a $46.00 price objective on Silicon Motion Technology and gave the company a “buy” rating in a research note on Thursday, November 1st. Finally, Craig Hallum dropped their price objective on Silicon Motion Technology from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday, October 31st. Three investment analysts have rated the stock with a sell rating, four have given a hold rating and ten have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $56.15.

SIMO opened at $35.84 on Friday. The company has a market cap of $1.29 billion, a price-to-earnings ratio of 17.15 and a beta of 0.95. Silicon Motion Technology has a 52 week low of $31.73 and a 52 week high of $61.85.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Tuesday, October 30th. The semiconductor producer reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.88 by $0.07. The business had revenue of $138.60 million during the quarter, compared to the consensus estimate of $137.36 million. Silicon Motion Technology had a return on equity of 17.92% and a net margin of 17.10%. The company’s revenue for the quarter was up 9.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.57 EPS. As a group, equities research analysts predict that Silicon Motion Technology will post 2.89 earnings per share for the current year.

A number of large investors have recently made changes to their positions in SIMO. Quantbot Technologies LP acquired a new stake in Silicon Motion Technology during the 3rd quarter valued at $118,000. SG Americas Securities LLC acquired a new stake in shares of Silicon Motion Technology during the third quarter worth $121,000. Pitcairn Co. acquired a new stake in shares of Silicon Motion Technology during the second quarter worth $201,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Silicon Motion Technology during the third quarter worth $252,000. Finally, Henry James International Management Inc. acquired a new stake in shares of Silicon Motion Technology during the third quarter worth $271,000. Hedge funds and other institutional investors own 74.00% of the company’s stock.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile and enterprise storage, and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded multimediacard (eMMC), universal flash storage, client solid-state drive (SSD), secure digital card, flash memory card controller, and universal serial bus flash drive controller products.

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