Silicon Motion Technology Co. (NASDAQ:SIMO) Announces $0.50 Quarterly Dividend

Silicon Motion Technology Co. (NASDAQ:SIMO - Get Free Report) announced a quarterly dividend on Thursday, January 9th,NASDAQ Dividends reports. Stockholders of record on Thursday, February 13th will be paid a dividend of 0.50 per share by the semiconductor producer on Thursday, February 27th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.54%. The ex-dividend date of this dividend is Thursday, February 13th.

Silicon Motion Technology has raised its dividend payment by an average of 8.9% annually over the last three years. Silicon Motion Technology has a payout ratio of 44.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Silicon Motion Technology to earn $4.56 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 43.9%.

Silicon Motion Technology Price Performance

Silicon Motion Technology stock traded up $1.23 during mid-day trading on Friday, reaching $56.51. 231,133 shares of the company traded hands, compared to its average volume of 385,734. The firm's fifty day moving average is $54.51 and its two-hundred day moving average is $56.99. The company has a market capitalization of $1.90 billion, a price-to-earnings ratio of 21.10, a price-to-earnings-growth ratio of 1.34 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 - Get Free Report) last released its earnings results on Wednesday, February 5th. The semiconductor producer reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.10). Silicon Motion Technology had a net margin of 11.29% and a return on equity of 11.59%. As a group, equities research analysts predict that Silicon Motion Technology will post 2.91 earnings per share for the current year.

Wall Street Analyst Weigh In

SIMO has been the topic of several research reports. Needham & Company LLC reiterated a "buy" rating and issued a $70.00 price target on shares of Silicon Motion Technology in a report on Friday, February 7th. StockNews.com lowered Silicon Motion Technology from a "buy" rating to a "hold" rating in a research report on Thursday. Wedbush reiterated an "outperform" rating and issued a $90.00 target price on shares of Silicon Motion Technology in a research note on Monday, December 23rd. Susquehanna dropped their price target on shares of Silicon Motion Technology from $110.00 to $95.00 and set a "positive" rating on the stock in a research report on Friday, November 1st. Finally, Craig Hallum lowered their target price 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. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, Silicon Motion Technology presently has an average rating of "Moderate Buy" and a consensus price target of $80.63.

Silicon Motion Technology declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 5th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the semiconductor producer to repurchase up to 2.6% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

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.