why Silicon Motion Technology Corporation [SIMO] is a Good Choice for Investors After New Price Target of $107.90


Silicon Motion Technology Corporation [NASDAQ: SIMO] jumped around 13.96 points on Thursday, while shares priced at $95.16 at the close of the session, up 17.19%. The company report on May 5, 2022 that Silicon Motion Announces Results for the Period Ended March 31, 2022.

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Business Highlights.

Silicon Motion Technology Corporation stock is now 0.14% up from its year-to-date (YTD) trading value. SIMO Stock saw the intraday high of $98.65 and lowest of $93.3804 per share. The company’s 52-week high price is 96.89, which means current price is +47.74% above from all time high which was touched on 05/05/22.

Compared to the average trading volume of 649.52K shares, SIMO reached a trading volume of 7078548 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Silicon Motion Technology Corporation [SIMO]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SIMO shares is $107.90 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SIMO stock is a recommendation set at 2.20. 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.

Cowen have made an estimate for Silicon Motion Technology Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 07, 2021. While these analysts kept the previous recommendation, Susquehanna raised their target price from $85 to $90. The new note on the price target was released on October 29, 2021, representing the official price target for Silicon Motion Technology Corporation stock. Previously, the target price had yet another raise from $68 to $78, while Morgan Stanley kept a Equal-Weight rating on SIMO stock. On August 02, 2021, analysts increased their price target for SIMO shares from 85 to 100.

The Average True Range (ATR) for Silicon Motion Technology Corporation is set at 5.52, with the Price to Sales ratio for SIMO stock in the period of the last 12 months amounting to 3.95. The Price to Book ratio for the last quarter was 5.05. Price to Free Cash Flow for SIMO in the course of the last twelve months was 37.97 with Quick ratio for the last quarter at 2.30.

How has SIMO stock performed recently?

Silicon Motion Technology Corporation [SIMO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.31. With this latest performance, SIMO shares gained by 36.70% in over the last four-week period, additionally plugging by 34.67% over the last 6 months – not to mention a rise of 47.01% 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 SIMO stock in for the last two-week period is set at 69.99, with the RSI for the last a single of trading hit 73.76, and the three-weeks RSI is set at 66.71 for Silicon Motion Technology Corporation [SIMO]. The present Moving Average for the last 50 days of trading for this stock 73.36, while it was recorded at 82.67 for the last single week of trading, and 75.74 for the last 200 days.

Silicon Motion Technology Corporation [SIMO]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Silicon Motion Technology Corporation [SIMO] shares currently have an operating margin of +26.66 and a Gross Margin at +49.97. Silicon Motion Technology Corporation’s Net Margin is presently recorded at +21.69.

Return on Equity for this stock inclined to 32.98, with Return on Assets sitting at 23.39.

Silicon Motion Technology Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.90.

Earnings analysis for Silicon Motion Technology Corporation [SIMO]

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 SIMO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Silicon Motion Technology Corporation go to 7.00%.

Insider trade positions for Silicon Motion Technology Corporation [SIMO]

There are presently around $2,170 million, or 81.90% of SIMO stock, in the hands of institutional investors. The top three institutional holders of SIMO stocks are: CARDINAL CAPITAL MANAGEMENT LLC /CT with ownership of 1,883,924, which is approximately -25.139% of the company’s market cap and around 7.40% of the total institutional ownership; YIHENG CAPITAL MANAGEMENT, L.P., holding 1,656,124 shares of the stock with an approximate value of $134.48 million in SIMO stocks shares; and LORD, ABBETT & CO. LLC, currently with $127.91 million in SIMO stock with ownership of nearly 8.862% of the company’s market capitalization.

Positions in Silicon Motion Technology Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 107 institutional holders increased their position in Silicon Motion Technology Corporation [NASDAQ:SIMO] by around 3,729,102 shares. Additionally, 115 investors decreased positions by around 4,752,012 shares, while 34 investors held positions by with 18,248,292 shares. The mentioned changes placed institutional holdings at 26,729,406 shares, according to the latest SEC report filing. SIMO stock had 43 new institutional investments in for a total of 1,825,450 shares, while 38 institutional investors sold positions of 1,354,074 shares during the same period.