Silicon Motion Technology Corp ADR (NASDAQ: SIMO)’s stock price has gone rise by 0.21 in comparison to its previous close of 64.80, however, the company has experienced a 1.67% increase in its stock price over the last five trading days. zacks.com reported 2024-08-21 that Silicon Motion (SIMO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Is It Worth Investing in Silicon Motion Technology Corp ADR (NASDAQ: SIMO) Right Now?
Silicon Motion Technology Corp ADR (NASDAQ: SIMO) has a higher price-to-earnings ratio of 27.81x compared to its average ratio. SIMO has 36-month beta value of 0.84. Analysts have mixed views on the stock, with 11 analysts rating it as a “buy,” 0 as “overweight,” 2 as “hold,” and 1 as “sell.”
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The public float for SIMO is 33.40M, and currently, short sellers hold a 2.42% ratio of that float. The average trading volume of SIMO on August 23, 2024 was 376.67K shares.
SIMO’s Market Performance
The stock of Silicon Motion Technology Corp ADR (SIMO) has seen a 1.67% increase in the past week, with a -5.45% drop in the past month, and a -16.94% fall in the past quarter. The volatility ratio for the week is 2.49%, and the volatility levels for the past 30 days are at 4.16% for SIMO. The simple moving average for the past 20 days is 1.80% for SIMO’s stock, with a -7.31% simple moving average for the past 200 days.
Analysts’ Opinion of SIMO
Many brokerage firms have already submitted their reports for SIMO stocks, with BofA Securities repeating the rating for SIMO by listing it as a “Underperform.” The predicted price for SIMO in the upcoming period, according to BofA Securities is $60 based on the research report published on August 16, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see SIMO reach a price target of $88, previously predicting the price at $59. The rating they have provided for SIMO stocks is “Overweight” according to the report published on May 06th, 2024.
Craig Hallum gave a rating of “Buy” to SIMO, setting the target price at $96 in the report published on May 06th of the current year.
SIMO Trading at -11.47% from the 50-Day Moving Average
After a stumble in the market that brought SIMO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -24.38% of loss for the given period.
Volatility was left at 4.16%, however, over the last 30 days, the volatility rate increased by 2.49%, as shares sank -7.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -20.74% lower at present.
During the last 5 trading sessions, SIMO rose by +1.91%, which changed the moving average for the period of 200-days by +16.65% in comparison to the 20-day moving average, which settled at $63.54. In addition, Silicon Motion Technology Corp ADR saw 5.99% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SIMO
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.44 for the gross margin
The net margin for Silicon Motion Technology Corp ADR stands at 0.1. The total capital return value is set at 0.1. Equity return is now at value 10.17, with 7.95 for asset returns.
Currently, EBITDA for the company is 63.14 million with net debt to EBITDA at -2.59. When we switch over and look at the enterprise to sales, we see a ratio of 2.43. The receivables turnover for the company is 4.05for trailing twelve months and the total asset turnover is 0.75. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.34.
Conclusion
To put it simply, Silicon Motion Technology Corp ADR (SIMO) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
