Share Repurchase Plan Authorized by Silicon Motion Technology (NASDAQ:SIMO) Board of Directors

Silicon Motion Technology (NASDAQ:SIMO) announced that its Board of Directors has authorized a share 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 purchase up to 2.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Craig Hallum lowered their price objective on shares of Silicon Motion Technology from $96.00 to $90.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. Needham & Company LLC reissued a “buy” rating and issued a $70.00 price target on shares of Silicon Motion Technology in a report on Friday. Wedbush restated an “outperform” rating and issued a $90.00 price objective on shares of Silicon Motion Technology in a research report on Monday, December 23rd. StockNews.com upgraded Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Wednesday. Finally, Susquehanna dropped their target price on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research report on Friday, November 1st. One research analyst has rated the stock with a sell rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $81.11.

Silicon Motion Technology Trading Down 5.0 %

NASDAQ SIMO opened at $52.80 on Friday. Silicon Motion Technology has a 12 month low of $48.81 and a 12 month high of $85.87. The company has a market capitalization of $1.78 billion, a PE ratio of 20.00, a P/E/G ratio of 1.30 and a beta of 0.79. The stock has a 50-day simple moving average of $54.63 and a 200 day simple moving average of $57.63.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share 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%. As a group, sell-side analysts predict that Silicon Motion Technology will post 2.58 earnings per share for the current fiscal year.

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 given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.79%. The ex-dividend date of this dividend is Thursday, February 13th. Silicon Motion Technology’s dividend payout ratio is currently 75.38%.

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.