Heartland Value Plus Fund Highlights Silicon Motion Technology Corporation's Q2 Performance, Shares Surge Over 70%

Heartland Advisors' "Heartland Value Plus Fund" gained 1.86% in Q2, compared to the Russell 2000 Value Index's 4.97% gain. The fund highlighted Silicon Motion Technology Corp. (SIMO), which rose more than 70% in Q2 after taking a hit earlier in the year due to tariff concerns and uncertainty over cloud service providers' capex needs. The company's shares surged as hyperscalers confirmed robust datacenter capex growth and consumer sentiment rebounded.

In the second quarter of 2025, Heartland Advisors' "Heartland Value Plus Fund" gained 1.86%, outperforming the Russell 2000 Value Index's 4.97% gain. The fund's performance was notable despite the challenging environment for small stocks [1]. Among the fund's top picks for 2025, Silicon Motion Technology Corp. (SIMO) stood out, surging more than 70% in Q2 after a tumultuous start to the year [2].

Silicon Motion Technology Corp. (SIMO), a provider of negative-AND (NAND) flash controllers for Solid State Drives (SSDs) and other solid state storage devices, saw its shares rebound significantly in the second quarter. The company's stock ended the recent trading session at $72.34, up from $43.44 at the beginning of the year. This recovery was driven by several factors, including robust datacenter capex growth from hyperscalers and an improvement in consumer sentiment [3].

The company's earnings are expected to report earnings per share (EPS) of $0.52 in the upcoming quarter, down 45.83% from the prior-year quarter. However, revenue is projected to be $180.4 million, a decrease of 14.37% from the prior-year quarter. For the full year, analysts are expecting earnings of $3.41 per share and revenue of $815.03 million, marking changes of -0.58% and +1.43% from last year, respectively [3].

Silicon Motion Technology Corp. (SIMO) currently trades at a Forward P/E ratio of 21.62, which is higher than the industry average of 19.21. The company's PEG ratio of 10.2 is also higher than the industry average of 4.33. Despite these metrics, the company's Zacks Rank of #2 (Buy) suggests analysts are optimistic about the company's prospects [3].

Heartland Advisors' "Heartland Value Plus Fund" has shown promise in identifying undervalued opportunities in the market. Silicon Motion Technology Corp. (SIMO) is one such example, where the fund's investment thesis was validated by the company's strong performance in the second quarter. Investors should continue to monitor the company's earnings reports and other financial metrics to assess its future prospects.

References:
[1] https://finance.yahoo.com/news/heartland-value-plus-fund-views-115447491.html
[2] https://www.cnbc.com/quotes/SIMO
[3] https://finance.yahoo.com/news/silicon-motion-simo-sees-more-220005364.html