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

Silicon Motion Technology (NASDAQ:SIMO) announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 5th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization permits the semiconductor producer to repurchase up to 2.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Silicon Motion Technology Price Performance

Silicon Motion Technology stock opened at $56.62 on Thursday. The firm has a fifty day moving average price of $54.57 and a two-hundred day moving average price of $57.65. The firm has a market cap of $1.91 billion, a price-to-earnings ratio of 21.45, a P/E/G ratio of 1.30 and a beta of 0.79. Silicon Motion Technology has a fifty-two week low of $48.81 and a fifty-two week high of $85.87.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.10). Silicon Motion Technology had a return on equity of 11.52% and a net margin of 10.90%. As a group, sell-side analysts expect that Silicon Motion Technology will post 2.58 earnings per share for the current year.

Silicon Motion Technology Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on SIMO shares. Craig Hallum lowered their price target on 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 raised shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research report on Wednesday. Needham & Company LLC cut their target price on shares of Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating for the company in a research report on Friday, November 1st. Wedbush restated an “outperform” rating and set a $90.00 price target on shares of Silicon Motion Technology in a report on Monday, December 23rd. Finally, Susquehanna cut their price target on Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research note on Friday, November 1st. One investment analyst has rated the stock with a sell rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $81.67.

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.