William Blair slashes price target on SiTime Corporation [SITM] – find out why.

SiTime Corporation [NASDAQ: SITM] slipped around -15.62 points on Thursday, while shares priced at $124.66 at the close of the session, down -11.13%. The company report on February 18, 2021 that SiTime Corporation Announces Pricing of Follow-on Public Offering.

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SiTime Corporation (Nasdaq: SITM), a leader in MEMS timing, announced the pricing of its follow-on public offering of 3,000,000 shares of its common stock at a price to the public of $127.00 per share, including 1,500,000 shares of common stock to be sold by MegaChips Corporation and 1,500,000 shares of common stock to be issued and sold by SiTime. SiTime will not receive any proceeds from the sale of shares of common stock by MegaChips Corporation. The gross proceeds of the offering to SiTime, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $190.5 million, excluding any exercise of the underwriters’ option. The offering is expected to close on February 22, 2021, subject to customary closing conditions.

SiTime has granted the underwriters a 30-day option to purchase up to 450,000 additional shares of common stock from SiTime at the public offering price, less underwriting discounts and commissions.

SiTime Corporation stock is now 11.37% up from its year-to-date (YTD) trading value. SITM Stock saw the intraday high of $127.1399 and lowest of $122.00 per share. The company’s 52-week high price is 151.78, which means current price is +16.19% above from all time high which was touched on 02/16/21.

Compared to the average trading volume of 157.85K shares, SITM reached a trading volume of 1476439 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about SiTime Corporation [SITM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SITM shares is $151.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SITM stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

William Blair have made an estimate for SiTime Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 30, 2020. While these analysts kept the previous recommendation, Needham dropped their target price from $33 to $27. The new note on the price target was released on April 15, 2020, representing the official price target for SiTime Corporation stock. Previously, the target price had yet another raise from $26 to $30, while Needham kept a Buy rating on SITM stock.

The Average True Range (ATR) for SiTime Corporation is set at 10.58, with the Price to Sales ratio for SITM stock in the period of the last 12 months amounting to 17.69. The Price to Book ratio for the last quarter was 20.40, with the Price to Cash per share for the same quarter was set at 4.20. Price to Free Cash Flow for SITM in the course of the last twelve months was 395.32 with Quick ratio for the last quarter at 5.10.

How has SITM stock performed recently?

SiTime Corporation [SITM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.37. With this latest performance, SITM shares dropped by -8.21% in over the last four-week period, additionally plugging by 84.87% over the last 6 months – not to mention a rise of 312.10% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SITM stock in for the last two-week period is set at 45.26, with the RSI for the last a single of trading hit 39.84, and the three-weeks RSI is set at 48.82 for SiTime Corporation [SITM]. The present Moving Average for the last 50 days of trading for this stock 122.58, while it was recorded at 139.58 for the last single week of trading, and 78.14 for the last 200 days.

SiTime Corporation [SITM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and SiTime Corporation [SITM] shares currently have an operating margin of -7.42 and a Gross Margin at +49.87. SiTime Corporation’s Net Margin is presently recorded at -8.07.

Return on Total Capital for SITM is now -7.50, given the latest momentum, and Return on Invested Capital for the company is -10.03. Return on Equity for this stock declined to -10.90, with Return on Assets sitting at -7.23. When it comes to the capital structure of this company, SiTime Corporation [SITM] has a Total Debt to Total Equity ratio set at 6.36. Additionally, SITM Total Debt to Total Capital is recorded at 5.98, with Total Debt to Total Assets ending up at 5.14. Long-Term Debt to Equity for the company is recorded at 6.36, with the Long-Term Debt to Total Capital now at 5.98.

Receivables Turnover for the company is 5.35 with a Total Asset Turnover recorded at a value of 0.90.SiTime Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 5.10 and a Current Ratio set at 6.00.

Earnings analysis for SiTime Corporation [SITM]

With the latest financial reports released by the company, SiTime Corporation posted -0.14/share EPS, while the average EPS was predicted by analysts to be reported at -0.18/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 22.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SITM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for SiTime Corporation go to 15.00%.

Insider trade positions for SiTime Corporation [SITM]

There are presently around $1,178 million, or 56.20% of SITM stock, in the hands of institutional investors. The top three institutional holders of SITM stocks are: FMR LLC with ownership of 1,185,039, which is approximately -20.968% of the company’s market cap and around 8.20% of the total institutional ownership; BLACKROCK INC., holding 755,029 shares of the stock with an approximate value of $94.12 million in SITM stocks shares; and DRIEHAUS CAPITAL MANAGEMENT LLC, currently with $87.04 million in SITM stock with ownership of nearly -8.56% of the company’s market capitalization.

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Positions in SiTime Corporation stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 84 institutional holders increased their position in SiTime Corporation [NASDAQ:SITM] by around 1,408,151 shares. Additionally, 33 investors decreased positions by around 1,468,743 shares, while 12 investors held positions by with 6,575,082 shares. The mentioned changes placed institutional holdings at 9,451,976 shares, according to the latest SEC report filing. SITM stock had 41 new institutional investments in for a total of 322,467 shares, while 6 institutional investors sold positions of 202,634 shares during the same period.

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