Zacks Investment Research cut shares of Silicon Motion Technology (NASDAQ:SIMO) from a hold rating to a sell rating in a report released on Monday morning.

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.”

SIMO has been the subject of several other reports. B. Riley set a $69.00 price objective on Silicon Motion Technology and gave the company a buy rating in a report on Wednesday, October 25th. Needham & Company LLC reissued a buy rating and set a $57.00 price target on shares of Silicon Motion Technology in a report on Friday, October 27th. ValuEngine cut Silicon Motion Technology from a buy rating to a hold rating in a report on Wednesday, November 15th. KeyCorp boosted their price target on Silicon Motion Technology from $55.00 to $60.00 and gave the stock an overweight rating in a report on Thursday, December 14th. Finally, BidaskClub raised Silicon Motion Technology from a hold rating to a buy rating in a report on Saturday, December 2nd. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and twelve have given a buy rating to the company. The company has an average rating of Buy and a consensus target price of $56.56.

Silicon Motion Technology (NASDAQ:SIMO) opened at $44.73 on Monday. The firm has a market capitalization of $1,578.10, a price-to-earnings ratio of 21.50 and a beta of 0.46. Silicon Motion Technology has a fifty-two week low of $39.91 and a fifty-two week high of $56.51.

The firm also recently declared a None dividend, which will be paid on Tuesday, February 27th. Stockholders of record on Monday, February 12th will be issued a dividend of $0.298 per share. The ex-dividend date of this dividend is Friday, February 9th. This represents a dividend yield of 2.12%. Silicon Motion Technology’s dividend payout ratio (DPR) is currently 47.60%.

A number of hedge funds have recently modified their holdings of the stock. Wells Fargo & Company MN grew its position in Silicon Motion Technology by 1.2% during the 2nd quarter. Wells Fargo & Company MN now owns 58,659 shares of the semiconductor producer’s stock worth $2,829,000 after acquiring an additional 701 shares during the last quarter. Virtu KCG Holdings LLC grew its position in Silicon Motion Technology by 25.3% during the 2nd quarter. Virtu KCG Holdings LLC now owns 5,770 shares of the semiconductor producer’s stock worth $278,000 after acquiring an additional 1,164 shares during the last quarter. SG Americas Securities LLC grew its position in Silicon Motion Technology by 14.1% during the 4th quarter. SG Americas Securities LLC now owns 11,234 shares of the semiconductor producer’s stock worth $595,000 after acquiring an additional 1,390 shares during the last quarter. DnB Asset Management AS grew its position in Silicon Motion Technology by 11.8% during the 4th quarter. DnB Asset Management AS now owns 13,300 shares of the semiconductor producer’s stock worth $704,000 after acquiring an additional 1,400 shares during the last quarter. Finally, Prince Street Capital Management LLC grew its position in Silicon Motion Technology by 1.7% during the 4th quarter. Prince Street Capital Management LLC now owns 114,300 shares of the semiconductor producer’s stock worth $6,054,000 after acquiring an additional 1,900 shares during the last quarter. Institutional investors and hedge funds own 83.10% of the company’s stock.

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Silicon Motion Technology Company Profile

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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