Silicon Motion Technology (NASDAQ:SIMO) Declares Share Repurchase Plan

Silicon Motion Technology (NASDAQ:SIMO) declared that its board has initiated a share repurchase program on Wednesday, February 5th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization permits the semiconductor producer to buy up to 2.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Silicon Motion Technology Stock Up 3.9 %

SIMO stock traded up $2.15 on Wednesday, reaching $56.62. 595,162 shares of the company’s stock were exchanged, compared to its average volume of 340,616. Silicon Motion Technology has a twelve month low of $48.81 and a twelve month high of $85.87. The stock has a fifty day moving average of $54.57 and a 200-day moving average of $57.65. The firm has a market cap of $1.91 billion, a PE ratio of 21.45, a P/E/G ratio of 1.30 and a beta of 0.79.

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 net margin of 10.90% and a return on equity of 11.52%. On average, equities research analysts predict that Silicon Motion Technology will post 2.58 EPS for the current fiscal year.

Silicon Motion Technology Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 27th. Shareholders of record on Thursday, February 13th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 3.53%. The ex-dividend date is Thursday, February 13th. Silicon Motion Technology’s dividend payout ratio (DPR) is 75.38%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on SIMO shares. StockNews.com raised Silicon Motion Technology from a “hold” rating to a “buy” rating in a report on Wednesday. Needham & Company LLC lowered their price target on Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating on the stock in a report on Friday, November 1st. Susquehanna reduced their price objective on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research note on Friday, November 1st. Craig Hallum dropped their target price on Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Finally, Roth Mkm decreased their price target on Silicon Motion Technology from $90.00 to $80.00 and set a “buy” rating for the company in a report on Tuesday, October 8th. One research analyst has rated the stock with a sell rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat.com, Silicon Motion Technology presently has an average rating of “Moderate Buy” and a consensus target price of $81.67.

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.