Shares of Silicon Motion Technology Corporation (NASDAQ:SIMO – Get Free Report) crossed above its 200-day moving average during trading on Wednesday after the company announced better than expected quarterly earnings. The stock has a 200-day moving average of $212.49 and traded as high as $222.29. Silicon Motion Technology shares last traded at $219.61, with a volume of 1,495,604 shares trading hands.
The semiconductor producer reported $1.91 earnings per share for the quarter, missing analysts’ consensus estimates of $3.30 by ($1.39). Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%. The company had revenue of $560.22 million during the quarter, compared to analyst estimates of $529.10 million.
Silicon Motion Technology Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be given a $0.5750 dividend. This represents a $2.30 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, November 5th. This is a positive change from Silicon Motion Technology’s previous quarterly dividend of $0.50. Silicon Motion Technology’s dividend payout ratio is 26.85%.
Key Silicon Motion Technology News
Here are the key news stories impacting Silicon Motion Technology this week:
- Positive Sentiment: Silicon Motion reported third-quarter revenue of $560.2 million, up 24% sequentially and 131% year over year. SSD controller sales rose 20%–25% sequentially, while Ferri and Boot Drive solutions increased 75%–80% sequentially. Silicon Motion Announces Results for the Quarterly Period Ended September 30, 2026
- Positive Sentiment: Management projected fourth-quarter revenue of $588 million to $616 million, representing 5%–10% sequential growth, and said enterprise and AI products remain in the early stages of contribution. The company also expects record 2026 revenue, exceeding double the prior year’s level. Silicon Motion Reports Third-Quarter 2026 Results
- Positive Sentiment: Non-GAAP earnings were $4.35 per diluted ADS, up sharply from $2.43 in the prior quarter. Gross margin improved to 53.6% on a GAAP basis, and the board increased the annual dividend 15% to $2.30 per ADS.
- Positive Sentiment: China Renaissance initiated coverage with a “buy” rating and a $300 price target, implying substantial upside from the referenced market price. China Renaissance SIMO Rating
- Neutral Sentiment: The stock moved above its 200-day moving average after earnings, which may attract momentum-focused investors, although it remains below its 50-day moving average. Silicon Motion Shares Break Above Two Hundred Day Moving Average
- Negative Sentiment: GAAP EPS of $1.91 missed the $3.30 consensus estimate. GAAP net income also fell sequentially, partly reflecting a significant investment loss, while eMMC and UFS controller sales declined 10%–15% sequentially.
- Negative Sentiment: Silicon Motion carries approximately $1.1 billion of convertible notes, and recent insider activity cited six sales with no purchases, factors that could temper investor enthusiasm.
Analyst Upgrades and Downgrades
SIMO has been the topic of several research reports. Zacks Research lowered Silicon Motion Technology from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. Needham & Company LLC boosted their price objective on Silicon Motion Technology from $240.00 to $355.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Craig Hallum reaffirmed a “buy” rating and issued a $325.00 target price on shares of Silicon Motion Technology in a research note on Friday, July 31st. Weiss Ratings lowered shares of Silicon Motion Technology from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, October 16th. Finally, China Renaissance began coverage on shares of Silicon Motion Technology in a research report on Wednesday. They set a “buy” rating and a $300.00 price target for the company. Ten research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Silicon Motion Technology has an average rating of “Moderate Buy” and a consensus price target of $328.50.
View Our Latest Report on Silicon Motion Technology
Hedge Funds Weigh In On Silicon Motion Technology
Several hedge funds have recently added to or reduced their stakes in the stock. Hawk Ridge Capital Management LP lifted its holdings in shares of Silicon Motion Technology by 48.9% during the 1st quarter. Hawk Ridge Capital Management LP now owns 1,173,315 shares of the semiconductor producer’s stock valued at $131,752,000 after purchasing an additional 385,568 shares in the last quarter. Schwartz Investment Counsel Inc. increased its stake in Silicon Motion Technology by 48.6% during the 3rd quarter. Schwartz Investment Counsel Inc. now owns 401,300 shares of the semiconductor producer’s stock worth $112,364,000 after purchasing an additional 131,300 shares in the last quarter. Lazard Asset Management LLC increased its stake in Silicon Motion Technology by 3.1% during the 1st quarter. Lazard Asset Management LLC now owns 781,981 shares of the semiconductor producer’s stock worth $87,809,000 after purchasing an additional 23,403 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in Silicon Motion Technology by 2.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 307,570 shares of the semiconductor producer’s stock worth $86,120,000 after purchasing an additional 7,871 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Silicon Motion Technology by 112.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 425,697 shares of the semiconductor producer’s stock worth $47,802,000 after buying an additional 225,221 shares during the period. Institutional investors and hedge funds own 78.02% of the company’s stock.
Silicon Motion Technology Stock Performance
The stock has a market capitalization of $7.45 billion, a price-to-earnings ratio of 25.75, a P/E/G ratio of 0.33 and a beta of 1.69. The firm’s fifty day simple moving average is $249.96 and its 200 day simple moving average is $212.49.
About Silicon Motion Technology
Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.
The company’s product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.
Read More
- Five stocks we like better than Silicon Motion Technology
- Boeing Got Its MAX 10 Approval, But Q3 Delivered a Reality Check
- The Invisible AI Backbone: Corning’s AI Fiber Play
- Heavy Metal: Why Nucor Could Be an Overlooked AI Infrastructure Winner
- Why Tesla’s Upside Is About More Than a SpaceX Merger
Receive News & Ratings for Silicon Motion Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Silicon Motion Technology and related companies with MarketBeat.com's FREE daily email newsletter.
