Zacks Investment Research lowered shares of Silicon Motion Technology (NASDAQ:SIMO) from a hold rating to a sell rating in a research report sent to investors on Monday.
According to Zacks, “Although, Silicon Motion’s fourth-quarter top and bottom line surpassed the Zacks Consensus Estimates, it however declined on a year over year basis. Going forward, first-quarter sales guidance was also tepid due to falling NAND prices and seasonal decline in SSD solutions. Operating margin is also expected to decline due to higher spending on research and development in the first-quarter. The company faces macroeconomic risks like political, economic and social instability and certain industry-specific regulations in geographies where the company operates. Further, intensifying competition in the USB flash drive controller market remains a major headwind. Going forward, dip in smartphones sales will prove to be a drag on the revenues. Nonetheless, the company expects the increase in the availability of 64 layer 3D NAND to bring down high NAND prices, which will eventually improve results.”
Several other research analysts also recently commented on the company. KeyCorp lifted their target price on Silicon Motion Technology from $55.00 to $60.00 and gave the stock an overweight rating in a research note on Thursday, December 14th. Nomura downgraded Silicon Motion Technology from a neutral rating to a reduce rating and set a $45.00 target price for the company. in a research note on Wednesday, January 10th. Summit Redstone upgraded Silicon Motion Technology from a hold rating to a buy rating in a research note on Thursday, December 7th. B. Riley reiterated a buy rating and set a $68.75 target price on shares of Silicon Motion Technology in a research note on Tuesday, January 16th. Finally, ValuEngine upgraded Silicon Motion Technology from a hold rating to a buy rating in a research note on Sunday, December 31st. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and twelve have given a buy rating to the company. Silicon Motion Technology presently has a consensus rating of Buy and a consensus target price of $56.56.
The company also recently declared a None dividend, which will be paid on Tuesday, February 27th. Investors of record on Monday, February 12th will be issued a dividend of $0.298 per share. The ex-dividend date is Friday, February 9th. This represents a yield of 2.12%. Silicon Motion Technology’s payout ratio is currently 47.60%.
A number of large investors have recently added to or reduced their stakes in the stock. Lazard Asset Management LLC lifted its holdings in Silicon Motion Technology by 1.0% during the 4th quarter. Lazard Asset Management LLC now owns 2,183,940 shares of the semiconductor producer’s stock worth $115,661,000 after purchasing an additional 21,773 shares during the last quarter. ARGA Investment Management LP lifted its holdings in Silicon Motion Technology by 13.5% during the 4th quarter. ARGA Investment Management LP now owns 2,088,771 shares of the semiconductor producer’s stock worth $110,621,000 after purchasing an additional 248,992 shares during the last quarter. Cardinal Capital Management LLC CT lifted its holdings in Silicon Motion Technology by 10.5% during the 4th quarter. Cardinal Capital Management LLC CT now owns 1,258,705 shares of the semiconductor producer’s stock worth $66,661,000 after purchasing an additional 119,700 shares during the last quarter. Royce & Associates LP lifted its holdings in Silicon Motion Technology by 78.0% during the 3rd quarter. Royce & Associates LP now owns 801,540 shares of the semiconductor producer’s stock worth $38,498,000 after purchasing an additional 351,140 shares during the last quarter. Finally, Driehaus Capital Management LLC acquired a new stake in Silicon Motion Technology during the 4th quarter worth approximately $38,132,000. 83.10% of the stock is owned by institutional investors and hedge funds.
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About Silicon Motion Technology
Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices.
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