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

Silicon Motion Technology Co. (NASDAQ:SIMO) declared a quarterly dividend on Wednesday, October 30th, NASDAQ Dividends reports. Stockholders of record on Thursday, May 8th will be given a dividend of 0.50 per share by the semiconductor producer on Thursday, May 22nd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.80%. The ex-dividend date of this dividend is Thursday, May 8th.

Silicon Motion Technology has increased its dividend payment by an average of 8.9% annually over the last three years. Silicon Motion Technology has a dividend payout ratio of 45.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Silicon Motion Technology to earn $4.38 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 45.7%.

Silicon Motion Technology Price Performance

SIMO opened at $52.70 on Tuesday. The company has a market capitalization of $1.79 billion, a PE ratio of 19.59, a price-to-earnings-growth ratio of 1.36 and a beta of 0.72. Silicon Motion Technology has a fifty-two week low of $37.21 and a fifty-two week high of $85.87. The business has a 50-day moving average of $48.25 and a 200-day moving average of $52.49.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings results on Tuesday, April 29th. The semiconductor producer reported $0.60 EPS for the quarter, topping the consensus estimate of $0.44 by $0.16. Silicon Motion Technology had a net margin of 11.29% and a return on equity of 11.63%. The company had revenue of $166.49 million for the quarter, compared to analyst estimates of $162.69 million. During the same quarter in the prior year, the business posted $0.64 EPS. Silicon Motion Technology’s quarterly revenue was down 12.1% on a year-over-year basis. On average, equities research analysts expect that Silicon Motion Technology will post 3.08 earnings per share for the current fiscal year.

Analyst Ratings Changes

SIMO has been the subject of a number of research reports. Needham & Company LLC reduced their price target on shares of Silicon Motion Technology from $70.00 to $65.00 and set a “buy” rating for the company in a report on Wednesday, April 30th. StockNews.com downgraded Silicon Motion Technology from a “buy” rating to a “hold” rating in a research report on Thursday, February 13th. B. Riley boosted their price objective on Silicon Motion Technology from $70.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, May 1st. Bank of America raised Silicon Motion Technology from an “underperform” rating to a “neutral” rating and set a $47.00 target price for the company in a research report on Wednesday, April 23rd. Finally, Wedbush reissued an “outperform” rating and issued a $90.00 price target on shares of Silicon Motion Technology in a report on Wednesday, April 30th. Two analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, Silicon Motion Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $75.88.

Silicon Motion Technology announced that its board has initiated a share buyback plan on Wednesday, February 5th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the semiconductor producer to purchase up to 2.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are 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.