Silicon Motion Technology Corporation (SIMO) Stock: A Good Pick In The Tech Sector?

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Silicon Motion Technology Corporation (SIMO) is headed up in the market in today’s trading session. The company, focused on the technology industry, is currently priced at $43.36 after a move up of 11.18% so far today. In terms of tech companies, there are several aspects that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories relating to SIMO:

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Oct-29-19 06:00PM Silicon Motion Announces Results for the Period Ended September 30, 2019
09:15AM S&P Goes Where Its Never Gone Before
Oct-28-19 10:18AM Is Silicon Motion Technology Corporation (SIMO) A Good Stock To Buy?
09:15AM S&P: 3 Weeks of Gains and 3 Points from a New Closing High
Oct-25-19 08:00AM Silicon Motion Announces Annual Dividend Increase

Nonetheless, any time investors are making a decision to invest, investors should focus on far more than just news, especially in the ever changing technology industry. Here’s what’s happing when it comes to Silicon Motion Technology Corporation.

The Performance That We’ve Seen From SIMO

While a move up on a single session, like what we’re seeing from Silicon Motion Technology Corporation may lead to excitement in some investors, a single session gain alone shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally important to dig into trends experienced by the stock beyond a single session. In the case of SIMO, here are the trends that investors have experienced:

  • Past 5 Sessions – Over the past five trading sessions, SIMO has generated a change in value that amounts to 2.63%.
  • Past Month – The monthly returns from Silicon Motion Technology Corporation works out to 10.33%.
  • Quarterly – Throughout the past three months, the stock has generated a return on investment of 7.73%
  • Bi-Annually – Throughout the last 6 months, we’ve seen a change that amounts to 6.82% from the company.
  • This Year So Far – Since the the last trading session of last year SIMO has resulted in a return of 13.04%.
  • Annually – Finally, over the last full year, investors have seen performance that works out to 2.85% out of SIMO. Throughout this period, the stock has traded at a high of -8.19% and a low of 40.51%.

Crucial Ratios

Looking at a few ratios having to do with a company can provide investors a view of how dangerous and/or rewarding a stock pick might be. Here are a few of the important ratios to think about when looking at SIMO.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is headed for declines. Across the sector, strong tech stocks tend to come with a lower short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, when it comes to Silicon Motion Technology Corporation, the stock’s short ratio is 1.99.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to pay its debts as they mature with only quick assets or current assets. Because in tech, several companies rely heavily on the continuation of support from investors as they work to bring new technologies to market, these ratios can be bad. However, several gems in the tech space do have strong quick and current ratios. In terms of SIMO, the quick and current ratios add up to 4.40 and 5.30 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price. In this case, the book to share value ratio equates to 15.44.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. In terms of SIMO, the cash to share value ratio is 7.69.

Big Money And Silicon Motion Technology Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in SIMO, here’s what we’re seeing:

Institutions own 73.30% of the company. Institutional interest has moved by -7.57% over the past three months. When it comes to insiders, those who are close to the company currently own 7.40% percent of SIMO shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About Silicon Motion Technology Corporation

While it’s never a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their opinions in order to validate your own thoughts when it comes to making an investment decision in the tech sector. Here are the recent moves that we have seen from analysts with regard to SIMO.

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Oct-22-19 Initiated Wedbush Neutral $39
Oct-07-19 Upgrade Nomura Reduce → Neutral
Aug-01-19 Reiterated Cowen Outperform $45 → $42
Aug-01-19 Downgrade JP Morgan Overweight → Neutral $50 → $40
May-06-19 Reiterated Cowen Outperform $43 → $45

Earnings

What have ween seen from SIMO in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – Currently, Wall St. analysts expect that SIMO will generate earnings per diluted share coming to a total of 2.84, with 0.56 being reported in the report for the current quarter. Although this isn’t associated with earnings, since we’re chatting on the topic of analysts, Silicon Motion Technology Corporation is presently rated a 2.50 when rated on a scale from 1 to 5 on which 1 is the poorest possible analyst rating and 5 is the best possible.
  • 5-Year Sales – Over the past half decade, Silicon Motion Technology Corporation has announced a change in revenue that comes to a total of 18.70%. EPS over the last 5 years have generated movement in the amount of 27.20%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is commonly referred to as in the world of humans, the company has experienced a change in earnings that amounts to -63.50%. The company has also seen a change when it comes to sales that comes to a total of -27.30%.

Float Information

Traders and investors tend to be interested in the counts of shares both available and outstanding. As it relates to Silicon Motion Technology Corporation, there are currently 36.52M with a float of 30.16M. This means that of the total of 36.52M shares of SIMO currently in existence today, 30.16M are able to be traded in the public realm.

It’s also important to dig into the short percentage of the float. After all, when a large percentage of the float is sold short, the overall opinion among investors is that the stock is headed for a dive. When it comes to SIMO, the short percentage of the float totals up to 2.11%. Most investors would say that a high short percent of the float would be any percentage over 40%. However, I’ve calculated that a short percent of the float over 26% is likely a a play that could prove to be very risky.

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