Silicon Motion Technology Corporation (NASDAQ:SIMO) shares fell to a low of $46.215 before closing at $46.89. Intraday shares traded counted 0.38 million, which was -8.74% lower than its 30-day average trading volume of 346.30K. SIMO’s previous close was $48.30 while the outstanding shares total 35.02M. The firm has a beta of 1.24, a 12-month trailing P/E ratio of 20.15, and a growth ratio of 2.88. The stock’s Relative Strength Index (RSI) is 55.37, with weekly volatility at 4.09% and ATR at 1.84. The SIMO stock’s 52-week price range has touched low of $26.72 and a $53.04 high. The stock traded lower over the last trading session, losing -2.92% on 06/29/20.
Investors have identified the Semiconductors company Silicon Motion Technology Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.64 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Silicon Motion Technology Corporation (SIMO) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 586503000 million total, with 129424000 million as their total liabilities.
SIMO were able to record 33.21 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 20.82 million. In cash movements, the company had a total of 39.61 million as operating cash flow.
Potential earnings growth for Silicon Motion Technology Corporation (SIMO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Silicon Motion Technology Corporation recorded a total of 132.77 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 28.68% coming in sequential stages and their sales for the third quarter reducing by -15.38%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 68.88 million trying to sell their products during the last quarter, with the result yielding a gross income of 63.89 million. This allows shareholders to hold on to 35.02M with the revenue now reading 0.74 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.60 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.82 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SIMO sounds very interesting.
Is the stock of SIMO attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 7.40%.
6 out of 11 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Silicon Motion Technology Corporation. 0 analysts has assigned a Sell rating on the SIMO stock. The 12-month mean consensus price target for the company’s shares has been set at $54.99.