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

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

Silicon Motion Technology has raised its dividend by an average of 8.9% annually over the last three years. Silicon Motion Technology has a payout ratio of 44.4% meaning its dividend is sufficiently covered by earnings. Research 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 Stock Up 0.9 %

Shares of NASDAQ:SIMO opened at $53.28 on Tuesday. The business’s 50 day moving average is $54.62 and its 200 day moving average is $57.23. The stock has a market cap of $1.79 billion, a P/E ratio of 19.81, a price-to-earnings-growth ratio of 1.34 and a beta of 0.79. Silicon Motion Technology has a 52-week low of $48.81 and a 52-week high of $85.87.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share (EPS) 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%. On average, sell-side analysts anticipate that Silicon Motion Technology will post 2.91 EPS for the current fiscal year.

Silicon Motion Technology declared that its board has approved a share repurchase plan on Wednesday, February 5th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the semiconductor producer to buy up to 2.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SIMO. Craig Hallum lowered their price target on shares of Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. StockNews.com raised Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Wednesday, February 5th. Wedbush reissued an “outperform” rating and issued a $90.00 price target on shares of Silicon Motion Technology in a research report on Monday, December 23rd. Needham & Company LLC reiterated a “buy” rating and issued a $70.00 target price on shares of Silicon Motion Technology in a research note on Friday. Finally, Susquehanna lowered their price target on shares of Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating on the stock in a report on Friday, November 1st. One analyst has rated the stock with a sell rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $80.63.

Silicon Motion Technology Company Profile

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.