SiTime (NASDAQ:SITM) Shares Decline 9.3% Following Insider Selling

Shares of SiTime Corporation (NASDAQ:SITM) experienced a significant drop of 9.3% during mid-day trading on Thursday after an insider sale was announced. The stock reached a low of $195.39 and was last traded at $202.33. In total, about 38,579 shares changed hands, a stark decline of 82% compared to the average daily trading volume of 211,915 shares. The stock had previously closed at $222.99.

Insider Selling Activity

The insider selling activity that triggered this decline was linked to Fariborz Assaderaghi, who sold 1,003 shares of SiTime on Monday, February 3rd, at an average price of $204.42, resulting in a total transaction value of $205,033.26. After this sale, Assaderaghi holds 99,678 shares in the company, which are valued at approximately $20,376,176.76. This transaction represented a 1.00% decrease in their ownership in SiTime. Details of the sale were disclosed in a filing with the Securities and Exchange Commission (SEC).

Analyst Opinions

Several financial analysts have recently published their insights regarding SiTime. Barclays adjusted their target price for SiTime from $130.00 to $160.00 but maintained an "underweight" rating on the stock. Needham & Company LLC raised their price target from $225.00 to $250.00, giving it a "buy" rating. Similarly, Stifel Nicolaus increased their price objective from $230.00 to $250.00, assigning a "buy" rating as well. Roth MKM also raised their target from $205.00 to $230.00, marking SiTime as a stock to buy.

Stock Performance Overview

As of now, SiTime has a market capitalization of $4.79 billion. The stock shows a price-to-earnings (PE) ratio of -49.98 and a beta of 1.80. Its 50-day and 200-day simple moving averages are $228.20 and $186.20, respectively.

The most recent quarterly earnings report from SiTime was released on November 6th, where the company reported earnings per share (EPS) of $0.40, exceeding analysts' expectations of $0.26 by $0.14. During that same quarter, the company generated revenue of $57.70 million, surpassing the consensus estimate of $55.10 million. Despite these positive results, SiTime reported a negative net margin of 53.55% and a negative return on equity of 9.89%. When compared to the same period last year, the quarterly revenue showed a notable increase of 62.4%.

Insider Trading Trends

Recent trading patterns show that several hedge funds are actively adjusting their stakes in SiTime. For example, The Manufacturers Life Insurance Company increased its position by 9.7% in the second quarter, now holding 10,200 shares valued at approximately $1,269,000 after acquiring additional shares. SG Americas Securities LLC purchased a new position during the third quarter valued at about $878,000. Handelsbanken Fonder AB also raised its holdings by 17.7%. In total, institutional investors own about 84.31% of the stock.

Company Overview

SiTime Corporation specializes in designing, developing, and selling silicon timing systems solutions across several international markets, including Taiwan, Hong Kong, the United States, and Singapore. The company focuses on producing resonators, clock integrated circuits, and various types of oscillators, catering to diverse sectors such as communications, data centers, automotive, industrial, IoT, and aerospace.

SiTime, Insider, Stocks