Prospect Capital Advisors LLC lessened its holdings in Silicon Motion Technology Corporation (NASDAQ:SIMO – Free Report) by 6.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 82,240 shares of the semiconductor producer’s stock after selling 6,110 shares during the quarter. Silicon Motion Technology accounts for approximately 5.1% of Prospect Capital Advisors LLC’s holdings, making the stock its 7th biggest holding. Prospect Capital Advisors LLC owned approximately 0.24% of Silicon Motion Technology worth $9,235,000 at the end of the most recent quarter.
A number of other hedge funds also recently made changes to their positions in SIMO. Brown Brothers Harriman & Co. bought a new position in shares of Silicon Motion Technology during the 3rd quarter worth about $26,000. WealthCollab LLC increased its stake in Silicon Motion Technology by 77.4% in the fourth quarter. WealthCollab LLC now owns 346 shares of the semiconductor producer’s stock valued at $32,000 after acquiring an additional 151 shares during the period. Arax Advisory Partners increased its stake in Silicon Motion Technology by 220.9% in the fourth quarter. Arax Advisory Partners now owns 446 shares of the semiconductor producer’s stock valued at $41,000 after acquiring an additional 307 shares during the period. EverSource Wealth Advisors LLC raised its position in Silicon Motion Technology by 169.4% in the second quarter. EverSource Wealth Advisors LLC now owns 582 shares of the semiconductor producer’s stock worth $44,000 after purchasing an additional 366 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in Silicon Motion Technology in the second quarter worth about $75,000. Institutional investors and hedge funds own 78.02% of the company’s stock.
Insider Buying and Selling
In other news, Director Kuan-Ming Lin sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $305.00, for a total value of $610,000.00. Following the transaction, the director directly owned 8,500 shares of the company’s stock, valued at $2,592,500. The trade was a 19.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Han-Ping Shieh sold 1,000 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $328.00, for a total value of $328,000.00. Following the sale, the director directly owned 7,500 shares of the company’s stock, valued at $2,460,000. This represents a 11.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 4,000 shares of company stock valued at $1,239,250 in the last quarter. 5.34% of the stock is currently owned by corporate insiders.
Key Silicon Motion Technology News
- Positive Sentiment: Silicon Motion reported second-quarter revenue of $451 million, up 32% sequentially and 127% year over year. Non-GAAP earnings of $2.43 per ADS exceeded the $2.13 consensus estimate, while gross margin reached 50.2%. Silicon Motion Q2 earnings report
- Positive Sentiment: Management projected third-quarter revenue of $519 million to $541 million, representing 15% to 20% sequential growth and 114% to 124% annual growth. The company also expects non-GAAP operating margin of 27.5% to 28.5%. Silicon Motion Q3 guidance
- Positive Sentiment: Growth is broadening beyond consumer NAND controllers. Enterprise and edge SSD products, eMMC/UFS controllers, and Ferri and Boot Drive solutions—particularly for AI infrastructure, automotive and enterprise applications—are driving the company’s diversification. SIMO AI storage expansion
- Positive Sentiment: Wedbush said the results show SIMO is “executing on all fronts,” while Susquehanna raised its price target to $350 and Needham lifted its target to $355, both signaling continued confidence in the growth outlook. Wedbush and analyst commentary
- Positive Sentiment: Silicon Motion and MediaTek are collaborating on AI-ready vehicle storage solutions, adding potential exposure to automotive and edge-AI markets. Silicon Motion and MediaTek automotive storage partnership
- Neutral Sentiment: Despite the improved outlook, SIMO’s elevated valuation and recent rally may encourage profit-taking. Investors are also comparing its valuation with Hewlett Packard Enterprise, creating a potential near-term focus on relative value rather than fundamentals alone. HPE versus SIMO value comparison
- Negative Sentiment: Management cautioned that consumer businesses face NAND pricing and supply headwinds. Rising inventories, lower cash balances and recent bank borrowing could also temper enthusiasm if demand or execution weakens.
Wall Street Analysts Forecast Growth
A number of research analysts have commented on SIMO shares. Zacks Research upgraded shares of Silicon Motion Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. Wedbush upped their price objective on Silicon Motion Technology from $230.00 to $400.00 and gave the company an “outperform” rating in a research note on Monday, June 22nd. Weiss Ratings cut Silicon Motion Technology from a “buy (b-)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Susquehanna raised their target price on Silicon Motion Technology from $275.00 to $350.00 and gave the stock a “positive” rating in a research report on Friday. Finally, JPMorgan Chase & Co. boosted their price target on Silicon Motion Technology from $145.00 to $260.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $341.43.
View Our Latest Stock Analysis on SIMO
Silicon Motion Technology Stock Down 0.6%
Shares of Silicon Motion Technology stock opened at $253.60 on Friday. The stock has a market capitalization of $8.60 billion, a P/E ratio of 29.73, a price-to-earnings-growth ratio of 0.56 and a beta of 1.70. The company has a 50-day simple moving average of $288.86 and a 200 day simple moving average of $196.64. Silicon Motion Technology Corporation has a 12-month low of $71.35 and a 12-month high of $355.00.
Silicon Motion Technology (NASDAQ:SIMO – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The semiconductor producer reported $2.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.13 by $0.30. The firm had revenue of $451.00 million during the quarter, compared to the consensus estimate of $403.41 million. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 33.82%. The firm’s quarterly revenue was up 127.0% on a year-over-year basis. During the same period last year, the firm posted $0.69 EPS. On average, equities analysts anticipate that Silicon Motion Technology Corporation will post 9.01 earnings per share for the current year.
Silicon Motion Technology Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be paid a $0.50 dividend. The ex-dividend date is Thursday, August 6th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.8%. Silicon Motion Technology’s payout ratio is 23.33%.
Silicon Motion Technology Company Profile
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.
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