Silicon Motion Technology (SIMO) Downgraded 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 report 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.”

Several other research analysts have also issued reports on SIMO. Roth Capital increased their price objective on Silicon Motion Technology from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Tuesday, October 24th. B. Riley set a $69.00 price objective on Silicon Motion Technology and gave the stock a “buy” rating in a research note on Wednesday, October 25th. Needham & Company LLC reiterated a “buy” rating and set a $57.00 price objective on shares of Silicon Motion Technology in a research note on Friday, October 27th. Northland Securities reiterated a “buy” rating and set a $60.00 price objective on shares of Silicon Motion Technology in a research note on Sunday, October 29th. Finally, ValuEngine lowered Silicon Motion Technology from a “buy” rating to a “hold” rating in a research note on Wednesday, November 15th. Two analysts have rated the stock with a sell rating, three have given a hold rating and twelve have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $56.56.

Silicon Motion Technology (SIMO) opened at $44.69 on Monday. Silicon Motion Technology has a 12 month low of $39.91 and a 12 month high of $56.51. The stock has a market capitalization of $1,580.00, a price-to-earnings ratio of 21.28 and a beta of 0.47.

Large investors have recently made changes to their positions in the company. Daiwa Securities Group Inc. acquired a new stake in shares of Silicon Motion Technology in the third quarter valued at $101,000. Advisors Preferred LLC increased its stake in shares of Silicon Motion Technology by 451.0% in the third quarter. Advisors Preferred LLC now owns 2,667 shares of the semiconductor producer’s stock valued at $128,000 after buying an additional 2,183 shares in the last quarter. Boothbay Fund Management LLC acquired a new stake in shares of Silicon Motion Technology in the third quarter valued at $251,000. Virtu KCG Holdings LLC increased its stake in shares of Silicon Motion Technology by 25.3% in the second quarter. Virtu KCG Holdings LLC now owns 5,770 shares of the semiconductor producer’s stock valued at $278,000 after buying an additional 1,164 shares in the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new stake in shares of Silicon Motion Technology in the second quarter valued at $399,000. Institutional investors 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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