Silicon Motion Technology Corporation (SIMO): What’s Inside the Story?

On Tuesday, shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) marked $43.37 per share versus a previous $44.26 closing price. With having a -2.01% loss, an insight into the fundamental values of Silicon Motion Technology Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. SIMO showed a fall of -14.47% within its YTD performance, with highs and lows between $26.72 – $53.04 during the period of 52 weeks, compared to the simple moving average of -0.62% in the period of the last 200 days.

Cowen equity researchers changed the status of Silicon Motion Technology Corporation (NASDAQ: SIMO) shares to a “Outperform” rating in the report published on June 22nd, 2020. Other analysts, including BofA/Merrill, also published their reports on SIMO shares. BofA/Merrill repeated the rating from the previous report, marking SIMO under “Buy” rating, in the report published on March 26th, 2020. Additionally, SIMO shares got another “Buy” rating from Craig Hallum, setting a target price of $50 on the company’s shares, according to the report published in March 17th, 2020. On February 25th, 2020, BofA/Merrill Downgrade an Underperform rating and increased its price target to $40. On the other hand, Cowen Reiterated the “Outperform” rating for SIMO shares, as published in the report on February 10th, 2020. Summit Insights seems to be going bullish on the price of SIMO shares, based on the price prediction for SIMO. Another “Buy” rating came from Nomura.

Silicon Motion Technology Corporation (SIMO) Analysis

The present dividend yield for SIMO owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Silicon Motion Technology Corporation, the company needs to provide a healthy cash flow, currently at the value of 36.59. In addition, the growth of sales from quarter to quarter is recording 40.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Silicon Motion Technology Corporation (SIMO) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 14.80% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 3.70 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while SIMO is currently recording an average of 348.66K in volumes. The volatility of the stock on monthly basis is set at 3.86%, while the weekly volatility levels are marked at 2.89%with -2.08% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $55.59, indicating growth from the present price of $43.37, which can represent yet another valuable research and analysis points that can help you decide whether to invest in SIMO or pass.

What to Look for When Analyzing Silicon Motion Technology Corporation Shares?

Silicon Motion Technology Corporation (SIMO) is based in the Hong Kong and it represents one of the well-known company operating with Technology sector. If you wish to compare SIMO shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 18.64 for Silicon Motion Technology Corporation, while the value 12.92 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 2.33 is supported by the yearly EPS growth of -32.80%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 7.40%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 76.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in SIMO Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in SIMO in the recent period. That is how Lazard Asset Management LLC now has an increase position in SIMO by 45.01% in the first quarter, owning 2.18 million shares of SIMO stocks, with the value of $106.22 million after the purchase of an additional 676,100 shares during the last quarter. In the meanwhile, Yiheng Capital LLC also increased their stake in SIMO shares changed 66.71% in the first quarter, which means that the company now owns 1.98 million shares of company, all valued at $96.54 million after the acquisition of additional 792,100 shares during the last quarter.

ARGA Investment Management LP acquired a new position in Silicon Motion Technology Corporation during the first quarter, with the value of $77.44 million, and Erste Asset Management GmbH increased their stake in the company’s shares by 0.00% in the first quarter, now owning 0 shares valued at $32.19 million after the acquisition of the additional 660000 shares during the last quarter. At the present, 76.80% of SIMO shares are in the ownership of institutional investors.