Silicon Motion Technology Co. (NASDAQ:SIMO) Receives Average Recommendation of “Moderate Buy” from Analysts

Silicon Motion Technology Co. (NASDAQ:SIMO) has earned a consensus rating of “Moderate Buy” from the eight research firms that are presently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell rating and seven have assigned a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $80.63.

SIMO has been the topic of a number of research reports. Susquehanna reduced 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 report on Friday, November 1st. Wedbush restated an “outperform” rating and issued a $90.00 target price on shares of Silicon Motion Technology in a report on Monday, December 23rd. Craig Hallum reduced their target price on shares of Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. StockNews.com downgraded shares of Silicon Motion Technology from a “buy” rating to a “hold” rating in a report on Thursday, February 13th. Finally, Needham & Company LLC restated a “buy” rating and issued a $70.00 target price on shares of Silicon Motion Technology in a report on Friday, February 7th.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Cerity Partners LLC acquired a new position in Silicon Motion Technology during the 3rd quarter valued at approximately $1,826,000. JPMorgan Chase & Co. increased its stake in Silicon Motion Technology by 21.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 200,016 shares of the semiconductor producer’s stock valued at $12,149,000 after purchasing an additional 35,741 shares in the last quarter. Harbor Capital Advisors Inc. increased its stake in Silicon Motion Technology by 95.7% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 128,299 shares of the semiconductor producer’s stock valued at $7,793,000 after purchasing an additional 62,733 shares in the last quarter. Perigon Wealth Management LLC acquired a new position in Silicon Motion Technology during the 4th quarter valued at approximately $431,000. Finally, FMR LLC increased its stake in Silicon Motion Technology by 27.7% during the 3rd quarter. FMR LLC now owns 2,239,574 shares of the semiconductor producer’s stock valued at $136,032,000 after purchasing an additional 485,862 shares in the last quarter. Institutional investors and hedge funds own 78.02% of the company’s stock.

Silicon Motion Technology Stock Performance

Shares of NASDAQ SIMO opened at $58.80 on Friday. The company has a market cap of $1.98 billion, a P/E ratio of 21.86, a P/E/G ratio of 1.36 and a beta of 0.79. The firm’s fifty day moving average is $54.65 and its two-hundred day moving average is $56.68. 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 announced 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 11.29% and a return on equity of 11.63%. As a group, analysts forecast that Silicon Motion Technology will post 3.08 EPS for the current fiscal year.

Silicon Motion Technology declared that its Board of Directors has initiated a share buyback plan on Wednesday, February 5th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the semiconductor producer to buy up to 2.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Silicon Motion Technology Announces Dividend

The company also recently disclosed 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 of this dividend is Thursday, February 13th. This represents a $2.00 annualized dividend and a dividend yield of 3.40%. Silicon Motion Technology’s dividend payout ratio (DPR) is presently 74.35%.

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.