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

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

Silicon Motion Technology has increased its dividend by an average of 8.9% annually over the last three years. Silicon Motion Technology has a dividend payout ratio of 45.7% indicating that its dividend is sufficiently covered by earnings. Equities 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 Down 1.5 %

Shares of NASDAQ:SIMO opened at $52.70 on Tuesday. The company’s 50-day moving average price is $48.25 and its 200 day moving average price is $52.49. The company has a market cap of $1.79 billion, a PE ratio of 19.59, a P/E/G 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.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly 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. The company had revenue of $166.49 million during the quarter, compared to analyst estimates of $162.69 million. Silicon Motion Technology had a return on equity of 11.63% and a net margin of 11.29%. The firm’s quarterly revenue was down 12.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.64 EPS. As a group, equities analysts anticipate that Silicon Motion Technology will post 3.08 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SIMO. StockNews.com lowered Silicon Motion Technology from a “buy” rating to a “hold” rating in a research report on Thursday, February 13th. B. Riley lifted their target price 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. Bank of America upgraded shares of Silicon Motion Technology from an “underperform” rating to a “neutral” rating and set a $47.00 price target for the company in a research report on Wednesday, April 23rd. Wedbush reiterated an “outperform” rating and set a $90.00 price objective on shares of Silicon Motion Technology in a research report on Wednesday, April 30th. Finally, Needham & Company LLC reduced their target price on Silicon Motion Technology from $70.00 to $65.00 and set a “buy” rating for the company in a report on Wednesday, April 30th. Two investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $75.88.

Silicon Motion Technology announced that its board has approved a share buyback program on Wednesday, February 5th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the semiconductor producer to reacquire up to 2.6% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

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.