Silicon Motion Technology (SIMO) Board Announces Stock Repurchase Program

Silicon Motion Technology (NASDAQ:SIMO) declared that its board has approved a share buyback plan, which authorizes the company to repurchase $200.00 million in outstanding shares on Wednesday, November 21st. This repurchase authorization authorizes the semiconductor producer to purchase up to 15.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Shares of NASDAQ SIMO opened at $35.54 on Monday. Silicon Motion Technology has a 52 week low of $31.73 and a 52 week high of $61.85. The stock has a market capitalization of $1.28 billion, a P/E ratio of 17.00 and a beta of 0.95.

Silicon Motion Technology (NASDAQ:SIMO) last announced its quarterly earnings data on Tuesday, October 30th. The semiconductor producer reported $0.95 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.88 by $0.07. Silicon Motion Technology had a net margin of 17.10% and a return on equity of 17.92%. The firm had revenue of $138.60 million during the quarter, compared to analysts’ expectations of $137.36 million. During the same quarter last year, the business earned $0.57 earnings per share. The business’s revenue for the quarter was up 9.0% compared to the same quarter last year. Research analysts forecast that Silicon Motion Technology will post 2.89 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 23rd. Investors of record on Friday, November 9th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 3.38%. The ex-dividend date was Thursday, November 8th. Silicon Motion Technology’s dividend payout ratio (DPR) is 56.94%.

Several research analysts have issued reports on the stock. BidaskClub downgraded shares of Silicon Motion Technology from a “sell” rating to a “strong sell” rating in a research report on Wednesday, October 31st. KeyCorp assumed coverage on shares of Silicon Motion Technology in a research report on Tuesday, September 25th. They set a “sector weight” rating and a $60.00 price objective on the stock. Needham & Company LLC reissued a “buy” rating and set a $58.00 price objective on shares of Silicon Motion Technology in a research report on Friday. Lake Street Capital set a $46.00 price objective on shares of Silicon Motion Technology and gave the stock a “buy” rating in a research report on Thursday, November 1st. Finally, Zacks Investment Research raised shares of Silicon Motion Technology from a “hold” rating to a “buy” rating and set a $57.00 price objective on the stock in a research report on Monday, October 8th. Three analysts have rated the stock with a sell rating, four have given a hold rating and ten have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $56.15.

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About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile and enterprise storage, and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded multimediacard (eMMC), universal flash storage, client solid-state drive (SSD), secure digital card, flash memory card controller, and universal serial bus flash drive controller products.

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