Why Silicon Laboratories Stock Rose 19% in October

Shares of Silicon Laboratories (NASDAQ: SLAB) gained 18.8% in October 2017, according to data from S&P Global Market Intelligence. The two-part surge launched from some bullish analyst reports and took another leap when the company reported solid third-quarter results.

Two weeks before the earnings report, two different analyst firms raised their price targets for Silicon Labs from $85 to $95 per share. Both analysts cited positive long-term margin trends and good-looking growth opportunities in the chipmaker's Internet of Things segment. Share prices rose 5% that day.

The earnings report proved these bullish analysts correct, showing 12% sales growth and stable earnings thanks to a 23% groundswell in IoT sales. Silicon Labs' stock took another 6% leap over the next two days as analysts and investors digested the good news.

Source: Fool.com