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Given the large stake in the stock by institutions, Silicon Motion Technology’s stock price might be vulnerable to their trading decisions
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The top 18 shareholders own 51% of the company
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
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Every investor in Silicon Motion Technology Corporation (NASDAQ:SIMO) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 81% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week’s 3.9% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 75% and last week’s gain would have been more than welcomed.
Let’s delve deeper into each type of owner of Silicon Motion Technology, beginning with the chart below.
View our latest analysis for Silicon Motion Technology
NasdaqGS:SIMO Ownership Breakdown January 4th 2026
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Silicon Motion Technology. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Silicon Motion Technology’s earnings history below. Of course, the future is what really matters.
NasdaqGS:SIMO Earnings and Revenue Growth January 4th 2026
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don’t have many shares in Silicon Motion Technology. FMR LLC is currently the largest shareholder, with 10.0% of shares outstanding. Reinhart Partners, LLC is the second largest shareholder owning 4.4% of common stock, and Acadian Asset Management LLC holds about 3.8% of the company stock. In addition, we found that Chia-Chang Kou, the CEO has 1.4% of the shares allocated to their name.
After doing some more digging, we found that the top 18 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Silicon Motion Technology Corporation. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$100m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
The general public, who are usually individual investors, hold a 16% stake in Silicon Motion Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 1 warning sign for Silicon Motion Technology you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
