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 approved a stock buyback plan on Wednesday, February 5th, RTT News reports. The company plans to repurchase $50.00 million in shares. This repurchase authorization permits the semiconductor producer to buy up to 2.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Silicon Motion Technology Stock Performance

NASDAQ SIMO opened at $52.80 on Friday. Silicon Motion Technology has a twelve month low of $48.81 and a twelve month high of $85.87. The stock has a market cap of $1.78 billion, a PE ratio of 20.00, a PEG ratio of 1.30 and a beta of 0.79. The firm 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 data 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 return on equity of 11.52% and a net margin of 10.90%. Research 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 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. 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 payout ratio is 75.38%.

Wall Street Analyst Weigh In

SIMO has been the subject of several recent analyst reports. Susquehanna decreased 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. Craig Hallum decreased their target price on 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 research report on Friday. Wedbush reaffirmed an “outperform” rating and set a $90.00 price objective on shares of Silicon Motion Technology in a report on Monday, December 23rd. Finally, StockNews.com upgraded shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a report on Wednesday. One analyst has rated the stock with a sell rating and nine have issued a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $81.11.

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.