Silicon Motion Technology Co. (SIMO) to Issue Quarterly Dividend of $0.50 on February 27th

Silicon Motion Technology Co. (NASDAQ:SIMO) announced a quarterly dividend on Thursday, January 9th,NASDAQ Dividends reports. Stockholders 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 dividend 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% per year over the last three years. Silicon Motion Technology has a dividend payout ratio of 44.4% meaning its dividend is sufficiently covered by earnings. Equities 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 company has a market cap of $1.79 billion, a price-to-earnings ratio of 19.81, a PEG ratio of 1.34 and a beta of 0.79. Silicon Motion Technology has a fifty-two week low of $48.81 and a fifty-two week high of $85.87. The firm’s 50-day simple moving average is $54.62 and its 200-day simple moving average is $57.23.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.10). Silicon Motion Technology had a net margin of 11.29% and a return on equity of 11.59%. On average, research analysts forecast that Silicon Motion Technology will post 2.91 EPS for the current year.

Silicon Motion Technology announced that its Board of Directors has approved a stock buyback plan on Wednesday, February 5th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the semiconductor producer to reacquire up to 2.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on SIMO shares. Susquehanna reduced their price target 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. Wedbush reaffirmed an “outperform” rating and set a $90.00 price objective on shares of Silicon Motion Technology in a report on Monday, December 23rd. StockNews.com raised Silicon Motion Technology from a “hold” rating to a “buy” rating in a report on Wednesday, February 5th. Needham & Company LLC reaffirmed a “buy” rating and set a $70.00 price target on shares of Silicon Motion Technology in a research note on Friday. Finally, Craig Hallum decreased their price objective on shares of Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. One research analyst has rated the stock with a sell rating and eight have given a buy rating to the company. Based on data from MarketBeat, the stock 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.