Silicon Motion Technology (SIMO) Cut to “Sell” at Zacks Investment Research

Silicon Motion Technology (NASDAQ:SIMO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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.”

A number of other brokerages have also issued reports on SIMO. Nomura lowered Silicon Motion Technology from a “neutral” rating to a “reduce” rating and set a $45.00 target price on the stock. in a research report on Wednesday, January 10th. B. Riley reaffirmed a “buy” rating and set a $68.75 target price on shares of Silicon Motion Technology in a research report on Monday, January 8th. ValuEngine upgraded Silicon Motion Technology from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Summit Redstone upgraded Silicon Motion Technology from a “hold” rating to a “buy” rating in a research note on Thursday, December 7th. Finally, KeyCorp lifted their price target 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. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and twelve have given a buy rating to the company’s stock. Silicon Motion Technology has an average rating of “Buy” and a consensus price target of $56.56.

Shares of Silicon Motion Technology (SIMO) traded up $1.20 during midday trading on Monday, hitting $44.61. The stock had a trading volume of 535,900 shares, compared to its average volume of 762,635. Silicon Motion Technology has a twelve month low of $39.91 and a twelve month high of $56.51. The stock has a market capitalization of $1,575.98, a price-to-earnings ratio of 21.45 and a beta of 0.46.

A number of large investors have recently bought and sold shares of the stock. ARGA Investment Management LP boosted its stake in Silicon Motion Technology by 13.5% in the fourth quarter. ARGA Investment Management LP now owns 2,088,771 shares of the semiconductor producer’s stock valued at $110,621,000 after acquiring an additional 248,992 shares during the period. Royce & Associates LP boosted its stake in Silicon Motion Technology by 78.0% in the third quarter. Royce & Associates LP now owns 801,540 shares of the semiconductor producer’s stock valued at $38,498,000 after acquiring an additional 351,140 shares during the period. Northcape Capital Pty Ltd boosted its stake in Silicon Motion Technology by 7.3% in the fourth quarter. Northcape Capital Pty Ltd now owns 713,670 shares of the semiconductor producer’s stock valued at $37,796,000 after acquiring an additional 48,707 shares during the period. Janus Henderson Group PLC boosted its stake in Silicon Motion Technology by 64.7% in the third quarter. Janus Henderson Group PLC now owns 700,076 shares of the semiconductor producer’s stock valued at $33,639,000 after acquiring an additional 275,089 shares during the period. Finally, Sloane Robinson LLP boosted its stake in Silicon Motion Technology by 16.8% in the third quarter. Sloane Robinson LLP now owns 588,100 shares of the semiconductor producer’s stock valued at $28,246,000 after acquiring an additional 84,600 shares during the period. Institutional investors and hedge funds own 83.10% of the company’s stock.

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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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