Stocks

272 Capital LP Increases Stake in Silicon Motion Technology Co.

Published December 13, 2024

272 Capital LP has boosted its investment in Silicon Motion Technology Co. (NASDAQ: SIMO) by 55.3% during the third quarter. This was revealed in the firm’s latest Form 13F filing with the Securities and Exchange Commission. Following this increase, the fund now owns 101,391 shares of the semiconductor producer. This new amount reflects an addition of 36,092 shares bought during the quarter.

Silicon Motion Technology constitutes around 3.2% of 272 Capital LP's overall investment portfolio, making it the fund's eighth largest holding. As of the recent SEC filing, the fund has an estimated 0.30% ownership stake in Silicon Motion Technology, valued at approximately $6,158,000.

Institutional Investor Activities

Additional institutional investors and hedge funds have also adjusted their positions in Silicon Motion Technology. Cerity Partners LLC acquired a new position in the stock during the third quarter, investing about $1,826,000. Harbor Capital Advisors Inc. expanded its stake by an impressive 95.7%, now owning 128,299 shares worth about $7,793,000 after purchasing an additional 62,733 shares.

Furthermore, the National Bank of Canada FI increased its stake by a staggering 6,186.7% in the second quarter, resulting in ownership of 47,150 shares valued at $3,766,000 thanks to an addition of 46,400 shares. FMR LLC also raised its stake by 27.7% in the third quarter, now holding 2,239,574 shares valued at around $136,032,000 after acquiring an additional 485,862 shares. Additionally, Resolute Capital Asset Partners LLC raised its stake in Silicon Motion Technology by 44.4% during the second quarter and currently owns 65,000 shares worth approximately $5,264,000. Interestingly, 78.02% of Silicon Motion Technology's stock is held by institutional investors overall.

Current Market Performance

As of Friday, shares of Silicon Motion Technology opened at $57.95. The company has seen a 12-month low of $50.50 and a high of $85.87. Its total market capitalization stands at $1.95 billion, with a PE ratio of 21.31, a PEG ratio of 1.53, and a beta of 0.82. The business has recorded a 50-day moving average of $55.61 and a 200-day moving average of $64.93.

Earnings Results

On October 30th, Silicon Motion Technology released its latest earnings results, reporting $0.92 earnings per share, surpassing the consensus estimate of $0.85 by $0.07. During this quarter, the company achieved a revenue of $212.40 million, exceeding the consensus estimate of $209.49 million. Silicon Motion Technology maintained a return on equity of 11.52% and a net margin of 10.90%, indicating a 23.3% increase in quarterly revenue compared to the previous year when the firm recorded an EPS of $0.32. Analysts expect Silicon Motion Technology to post earnings of 2.59 per share for the current fiscal year.

Dividends and Shareholder Returns

The company has declared a quarterly dividend recently, paid on November 27th to shareholders recorded on November 14th. Shareholders received $0.50 per share, translating to an annualized dividend of $2.00, which yields 3.45%. The ex-dividend date was also on November 14th, and the company's payout ratio is recorded at 75.38%.

Analyst Insights

Various equities analysts have recently provided updates on Silicon Motion Technology. Morgan Stanley reduced their price target from $78.00 to $65.00 while rating it as "overweight." Another research firm, Roth MKM, decreased their target from $90.00 to $80.00, maintaining a "buy" rating. Craig Hallum lowered its target from $96.00 to $90.00, still rating it as a "buy." Susquehanna cut their target from $110.00 to $95.00, offering a "positive" rating. Finally, Needham & Company LLC diminished their target from $94.00 to $75.00 while continuing a "buy" recommendation. Currently, there is one sell rating, one hold rating, and eight buy ratings on the stock. According to MarketBeat, the consensus overall rating is "Moderate Buy" with an average target price of $81.67.

About Silicon Motion Technology

Silicon Motion Technology Corporation, along with its subsidiaries, specializes in designing, developing, and marketing NAND flash controllers for solid-state storage devices. The company's product offerings include controllers for computing-grade SSDs used in PCs and client devices, enterprise-grade SSDs for data centers, eMMC, mobile embedded storage for smartphones and IoT devices, flash memory cards, and specialized SSDs for industrial, commercial, and automotive applications.

Investment, HedgeFunds, Earnings