Silicon Motion (SIMO) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Silicon Motion (NASDAQ:SIMO) from a buy rating to a hold rating in a research report released on Friday.

According to Zacks, “Silicon Motion supplies client SSD controller to module makers, including most market leaders in the U.S., Taiwan and China. The company expects the increase in the availability of 64 layer 3D NAND to bring down high NAND prices, which will eventually improve results.Moreover, an expanding customer base and innovative products act as tailwinds for the its top-line growth. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has mixed record of earnings surprises in recent quarters. Acquisitions have supplemented the company's growth initiatives. However, 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.”

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SIMO has been the subject of several other research reports. Nomura downgraded shares of Silicon Motion from a neutral rating to a reduce rating and set a $45.00 price target for the company. in a research note on Wednesday, January 10th. BidaskClub raised shares of Silicon Motion from a buy rating to a strong-buy rating in a research note on Thursday, March 29th. KeyCorp reaffirmed a buy rating and set a $54.00 price target on shares of Silicon Motion in a research note on Wednesday, February 7th. Susquehanna Bancshares reaffirmed a neutral rating and set a $48.00 price target (down previously from $60.00) on shares of Silicon Motion in a research note on Tuesday, January 16th. Finally, ValuEngine raised shares of Silicon Motion from a hold rating to a buy rating in a research note on Sunday, December 31st. One analyst has rated the stock with a sell rating, three have given a hold rating and fourteen have given a buy rating to the company. Silicon Motion currently has an average rating of Buy and a consensus price target of $56.83.

Shares of NASDAQ:SIMO opened at $48.15 on Friday. The company has a market capitalization of $1,714.47, a P/E ratio of 23.00 and a beta of 0.60. Silicon Motion has a one year low of $40.33 and a one year high of $56.51.

Silicon Motion (NASDAQ:SIMO) last issued its quarterly earnings data on Tuesday, February 6th. The semiconductor producer reported $0.27 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.48 by ($0.21). The company had revenue of $136.17 million during the quarter, compared to the consensus estimate of $135.00 million. Silicon Motion had a net margin of 14.34% and a return on equity of 15.33%. equities analysts expect that Silicon Motion will post 2.98 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 22nd. Stockholders of record on Thursday, August 9th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.49%. The ex-dividend date of this dividend is Wednesday, August 8th. Silicon Motion’s dividend payout ratio (DPR) is presently 47.37%.

Several institutional investors and hedge funds have recently bought and sold shares of SIMO. Castleark Management LLC acquired a new stake in shares of Silicon Motion during the fourth quarter worth $148,000. EP Wealth Advisors LLC acquired a new stake in shares of Silicon Motion during the fourth quarter worth $233,000. SG Americas Securities LLC increased its position in shares of Silicon Motion by 14.1% during the fourth quarter. SG Americas Securities LLC now owns 11,234 shares of the semiconductor producer’s stock worth $595,000 after buying an additional 1,390 shares during the period. BancorpSouth Bank acquired a new stake in shares of Silicon Motion during the fourth quarter worth $652,000. Finally, DnB Asset Management AS increased its position in shares of Silicon Motion by 11.8% during the fourth quarter. DnB Asset Management AS now owns 13,300 shares of the semiconductor producer’s stock worth $704,000 after buying an additional 1,400 shares during the period. Institutional investors own 85.82% of the company’s stock.

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Silicon Motion Company Profile

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile storage and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded MultiMediaCard (eMMC), client solid-state drive (SSD), flash memory card, and Universal Serial Bus flash drive controllers.

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