Silicon Motion Technology Corp. (NASDAQ:SIMO) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

According to Zacks, “Silicon Motion has a decent earnings surprise history, with three strong earnings beats over the four trailing quarters. The company raised its revenue guidance for the full year, driven by surging demand for SSD controllers. Going forward, Silicon Motion believes strong momentum of its embedded storage products markets will continue to prosper, fuelled by present industry trends. This apart, the previously completed Shannon acquisition is boosting enterprise and industrial SSD solutions sales – especially in Chinese markets – thereby, positioning it well for long-term growth. Strategic product launches and strong commitment toward R&D activities is also expected to contribute to the company’s strength. However, escalating operating expenses, intensifying competition in USB flash drive controller markets and overall sluggishness in global wireless & broader semiconductor markets remain as concerns for Silicon Motion.”

Other analysts have also recently issued research reports about the stock. B. Riley reissued a “buy” rating and issued a $47.75 target price on shares of Silicon Motion Technology Corp. in a research note on Saturday, July 2nd. Needham & Company LLC restated a “buy” rating and issued a $47.00 price target on shares of Silicon Motion Technology Corp. in a research report on Wednesday, June 29th. Brean Capital restated a “buy” rating and issued a $60.00 price target on shares of Silicon Motion Technology Corp. in a research report on Tuesday, July 26th. Nomura restated a “buy” rating and issued a $62.00 price target (up from $46.00) on shares of Silicon Motion Technology Corp. in a research report on Tuesday, July 12th. Finally, Susquehanna restated a “positive” rating and issued a $56.00 price target (up from $48.00) on shares of Silicon Motion Technology Corp. in a research report on Wednesday, July 6th. Three investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. Silicon Motion Technology Corp. presently has a consensus rating of “Buy” and an average target price of $50.96.

Analyst Recommendations for Silicon Motion Technology Corp. (NASDAQ:SIMO)

This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at http://www.americanbankingnews.com/2016/09/20/silicon-motion-technology-corp-simo-stock-rating-lowered-by-zacks-investment-research.html

Silicon Motion Technology Corp. (NASDAQ:SIMO) traded up 0.7489% on Tuesday, reaching $50.5457. 277,342 shares of the company’s stock traded hands. Silicon Motion Technology Corp. has a 52-week low of $25.23 and a 52-week high of $56.25. The firm’s 50 day moving average price is $52.59 and its 200 day moving average price is $45.22. The firm has a market capitalization of $1.78 billion, a PE ratio of 22.5148 and a beta of 1.11.

Silicon Motion Technology Corp. (NASDAQ:SIMO) last posted its earnings results on Thursday, July 21st. The company reported $0.86 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.76 by $0.10. Silicon Motion Technology Corp. had a net margin of 18.29% and a return on equity of 22.62%. On average, analysts predict that Silicon Motion Technology Corp. will post $3.26 EPS for the current fiscal year.

A number of institutional investors have recently made changes to their positions in SIMO. Macquarie Group Ltd. acquired a new position in shares of Silicon Motion Technology Corp. during the second quarter valued at $1,888,000. Optimum Investment Advisors acquired a new position in shares of Silicon Motion Technology Corp. during the second quarter valued at $249,000. Royal Bank of Canada raised its position in shares of Silicon Motion Technology Corp. by 23.8% in the second quarter. Royal Bank of Canada now owns 5,595 shares of the company’s stock valued at $267,000 after buying an additional 1,074 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Silicon Motion Technology Corp. during the second quarter valued at $249,000. Finally, Numeric Investors LLC raised its position in shares of Silicon Motion Technology Corp. by 83.4% in the second quarter. Numeric Investors LLC now owns 65,100 shares of the company’s stock valued at $3,112,000 after buying an additional 29,600 shares in the last quarter. Institutional investors and hedge funds own 69.03% of the company’s stock.

Silicon Motion Technology Corp. Company Profile

Silicon Motion Technology Corporation (SMTC) 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. For the mobile storage market, the Company’s products are microcontrollers used in solid state storage devices, such as Solid State Drives (SSDs), Embedded Multimedia Cards (eMMCs) and other embedded flash applications, as well as removable storage products.

5 Day Chart for NASDAQ:SIMO

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

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

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