Silicon Motion Technology: Needham raises Buy rating, PT boosted to $90.

Silicon Motion Technology: Needham raises Buy rating, PT boosted to $90.

Silicon Motion Technology Corporation (NASDAQ: SIMO) has seen a significant boost in analyst sentiment, with Needham & Company LLC raising its rating to "Buy" and increasing its price target to $90, according to a recent report [1]. The stock reached a new 52-week high of $77.24 on Tuesday, indicating strong investor interest.

Needham's analysts highlighted the company's robust earnings performance and its commitment to returning value to shareholders through dividends. The stock has been the subject of several recent research reports, with a consensus rating of "Moderate Buy" and target prices ranging from $65 to $90 [1]. Other analysts have also expressed optimism about the company's future performance, with several upgrading their ratings and price targets in the past few months.

Silicon Motion Technology reported earnings of $0.69 per share for the quarter ended June 30, beating analysts' expectations of $0.54 per share [2]. The company's revenue for the quarter was $198.68 million, down 5.7% compared to the same quarter last year, but still above analysts' expectations of $180.40 million. The company's net margin was 12.06%, and its return on equity was 12.00%.

Institutional investors have also shown interest in the stock, with several hedge funds and other institutional investors increasing their stakes in the company in recent quarters [1]. Hedge funds and other institutional investors now own 78.02% of the stock [1].

Needham's upgrade and price target increase come as the stock has gained 41.8% so far this year and has risen by 2.0% in the past quarter. The company's fifty-day moving average price is $70.39, and its 200-day moving average price is $58.10 [1]. The company's market capitalization is $2.89 billion, with a P/E ratio of 30.40, a PEG ratio of 12.52, and a beta of 0.85 [1].

Silicon Motion Technology designs, develops, and markets NAND flash controllers for solid-state storage devices, serving markets such as PCs, data centers, smartphones, and industrial applications [1]. The company's strong performance and positive analyst sentiment suggest that it is well-positioned to continue growing in the coming quarters.

References:
[1] https://www.marketbeat.com/instant-alerts/silicon-motion-technology-nasdaqsimo-reaches-new-1-year-high-still-a-buy-2025-07-29/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TS2ZP:0-silicon-motion-technology-corp-reports-results-for-the-quarter-ended-june-30-earnings-summary/