Share Repurchase Program Announced by Silicon Motion Technology (NASDAQ:SIMO) Board
Silicon Motion Technology (NASDAQ:SIMO) announced a share repurchase program, authorizing the buyback of $50 million worth of shares, representing up to 2.6% of its stock. This decision indicates the board's belief that the stock is undervalued. Additionally, the company declared a quarterly dividend of $0.50 per share, with a yield of 3.53%. Analysts have mixed ratings on the stock, with an average target price of $81.67 and a consensus rating of "Moderate Buy."
Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) announced that its board has approved a share repurchase program on Wednesday, February 5th, RTT News reports. The company plans to buyback $50.00 million in shares. This buyback authorization authorizes the semiconductor producer to reacquire up to 2.6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.
Wall Street Analyst Weigh In
- Silicon Motion Proves That AI in Motion Stays in Motion
A number of research analysts recently weighed in on SIMO shares. Wedbush reaffirmed an "outperform" rating and issued a $90.00 price target on shares of Silicon Motion Technology in a research note on Monday, December 23rd. Craig Hallum decreased their price target on shares of 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. Needham & Company LLC dropped their price objective on shares of Silicon Motion Technology from $94.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, November 1st. StockNews.com upgraded Silicon Motion Technology from a "hold" rating to a "buy" rating in a research report on Wednesday. Finally, Roth Mkm cut their target price on Silicon Motion Technology from $90.00 to $80.00 and set a "buy" rating for the company in a research note on Tuesday, October 8th. One equities research analyst has rated the stock with a sell rating and nine have issued a buy rating to the company's stock. According to MarketBeat.com, Silicon Motion Technology presently has an average rating of "Moderate Buy" and an average target price of $81.67.
Read Our Latest Stock Report on Silicon Motion Technology
Silicon Motion Technology Trading Up 3.9 %
- Silicon Motion: The Market's Best Merger Arbitrage Opportunity
Silicon Motion Technology stock traded up $2.15 during trading on Wednesday, hitting $56.62. The company had a trading volume of 595,162 shares, compared to its average volume of 340,616. The company's 50 day simple moving average is $54.57 and its 200-day simple moving average is $57.65. Silicon Motion Technology has a 1-year low of $48.81 and a 1-year high of $85.87. The stock has a market cap of $1.91 billion, a price-to-earnings ratio of 21.45, a price-to-earnings-growth ratio of 1.30 and a beta of 0.79.
Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its earnings results 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%. As a group, analysts forecast that Silicon Motion Technology will post 2.58 earnings per share for the current fiscal year.
Silicon Motion Technology Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, February 27th. Shareholders of record on Thursday, February 13th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Thursday, February 13th. This represents a $2.00 dividend on an annualized basis and a yield of 3.53%. Silicon Motion Technology's dividend payout ratio (DPR) is presently 75.38%.
Silicon Motion Technology Company Profile
(Get Free Report)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.
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