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

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 annualized dividend and a dividend yield of 3.82%. The ex-dividend date is Thursday, May 8th.

Silicon Motion Technology has raised 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 Stock Performance

Silicon Motion Technology stock opened at $52.30 on Tuesday. The firm’s 50 day moving average price is $48.25 and its two-hundred day moving average price is $52.49. Silicon Motion Technology has a twelve month low of $37.21 and a twelve month high of $85.87. The firm has a market cap of $1.78 billion, a PE ratio of 19.44, a P/E/G ratio of 1.36 and a beta of 0.72.

Silicon Motion Technology (NASDAQ:SIMO) last announced its earnings results on Tuesday, April 29th. The semiconductor producer reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business had revenue of $166.49 million for the quarter, compared to analyst estimates of $162.69 million. During the same quarter in the previous year, the firm posted $0.64 earnings per share. Silicon Motion Technology’s revenue was down 12.1% compared to the same quarter last year. Equities analysts anticipate that Silicon Motion Technology will post 3.08 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have issued reports on SIMO shares. Needham & Company LLC dropped their price target on Silicon Motion Technology from $70.00 to $65.00 and set a “buy” rating on the stock in a research note on Wednesday, April 30th. Bank of America raised Silicon Motion Technology from an “underperform” rating to a “neutral” rating and set a $47.00 target price on the stock in a report on Wednesday, April 23rd. B. Riley increased their price target on shares of Silicon Motion Technology from $70.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday, May 1st. StockNews.com lowered shares of Silicon Motion Technology from a “buy” rating to a “hold” rating in a report on Thursday, February 13th. Finally, Wedbush reiterated an “outperform” rating and issued a $90.00 price objective on shares of Silicon Motion Technology in a report on Wednesday, April 30th. Two investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $75.88.

Silicon Motion Technology declared that its Board of Directors has initiated a share repurchase plan on Wednesday, February 5th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the semiconductor producer to purchase up to 2.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board 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.