Silicon Motion Technology Co. (NASDAQ:SIMO) Declares Quarterly Dividend of $0.50

Silicon Motion Technology Co. (NASDAQ:SIMO) declared a quarterly dividend on Thursday, January 9th,NASDAQ Dividends reports. Investors of record on Thursday, February 13th will be given a dividend of 0.50 per share by the semiconductor producer on Thursday, February 27th. This represents a $2.00 annualized dividend and a yield of 3.75%. The ex-dividend date of this dividend is Thursday, February 13th.

Silicon Motion Technology has raised its dividend payment by an average of 8.9% annually over the last three years. Silicon Motion Technology has a dividend payout ratio of 44.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Silicon Motion Technology to earn $4.56 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 43.9%.

Silicon Motion Technology Price Performance

SIMO stock opened at $53.28 on Tuesday. The stock has a market capitalization of $1.79 billion, a P/E ratio of 19.81, a P/E/G ratio of 1.34 and a beta of 0.79. Silicon Motion Technology has a 1-year low of $48.81 and a 1-year high of $85.87. The business has a fifty day moving average price of $54.62 and a 200-day moving average price of $57.23.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.10). Silicon Motion Technology had a return on equity of 11.59% and a net margin of 11.29%. As a group, analysts anticipate that Silicon Motion Technology will post 2.91 earnings per share for the current year.

Silicon Motion Technology announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 5th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the semiconductor producer to buy up to 2.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. StockNews.com upgraded shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research note on Wednesday, February 5th. Craig Hallum cut their price target on Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. Wedbush reiterated an “outperform” rating and issued a $90.00 price objective on shares of Silicon Motion Technology in a research note on Monday, December 23rd. Susquehanna cut their target price on shares of Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research report on Friday, November 1st. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $70.00 price target on shares of Silicon Motion Technology in a research report on Friday. One research analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $80.63.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.