Silicon Motion Technology (NASDAQ:SIMO) Board Authorizes Stock Repurchase Program

Silicon Motion Technology (NASDAQ:SIMO) declared that its board has approved a stock buyback plan on Wednesday, February 5th, RTT News reports. The company plans to repurchase $50.00 million in shares. This repurchase authorization allows the semiconductor producer to repurchase up to 2.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. StockNews.com upgraded shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research note on Wednesday. Susquehanna cut their price target on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating on the stock in a report on Friday, November 1st. Wedbush reaffirmed an “outperform” rating and issued a $90.00 target price on shares of Silicon Motion Technology in a research report on Monday, December 23rd. Craig Hallum cut their target price on Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating on the stock in a research note on Thursday, October 31st. Finally, Needham & Company LLC cut their price objective on shares of Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating on the stock in a research report on Friday, November 1st. One research analyst has rated the stock with a sell rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $81.67.

Silicon Motion Technology Stock Up 3.9 %

Shares of SIMO opened at $56.62 on Thursday. The firm has a market capitalization of $1.91 billion, a PE ratio of 21.45, a P/E/G ratio of 1.30 and a beta of 0.79. The firm has a 50-day moving average price of $54.57 and a 200 day moving average price of $57.65. Silicon Motion Technology has a 52-week low of $48.81 and a 52-week high of $85.87.

Silicon Motion Technology (NASDAQ:SIMO) last posted its quarterly earnings data on Wednesday, February 5th. The semiconductor producer reported $0.68 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 analysts expect that Silicon Motion Technology will post 2.58 EPS for the current year.

Silicon Motion Technology Announces Dividend

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

About Silicon Motion Technology

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.