Silicon Motion Technology Co. (NASDAQ:SIMO) to Issue 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 paid 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 is Thursday, February 13th.

Silicon Motion Technology has raised its dividend by an average of 8.9% per year over the last three years. Silicon Motion Technology has a payout ratio of 44.4% indicating that its dividend is sufficiently covered by earnings. 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 firm’s 50-day simple moving average is $54.62 and its 200 day simple moving average is $57.23. The company has a market cap of $1.79 billion, a price-to-earnings ratio of 19.81, a price-to-earnings-growth ratio of 1.34 and a beta of 0.79. Silicon Motion Technology has a 12-month low of $48.81 and a 12-month high of $85.87.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate 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, equities analysts expect that Silicon Motion Technology will post 2.91 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SIMO shares. Wedbush restated an “outperform” rating and set a $90.00 target price on shares of Silicon Motion Technology in a research report on Monday, December 23rd. Susquehanna cut 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 research report on Friday, November 1st. Craig Hallum cut their price target 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. StockNews.com upgraded shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Wednesday, February 5th. 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 analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $80.63.

Silicon Motion Technology declared that its board has initiated 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 repurchase up to 2.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

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.