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

Silicon Motion Technology Co. (NASDAQ:SIMO) announced a quarterly dividend on Monday, April 22nd, Wall Street Journal reports. Shareholders of record on Thursday, May 9th will be paid a dividend of 0.50 per share by the semiconductor producer on Thursday, May 23rd. This represents a $2.00 annualized dividend and a yield of 2.76%. The ex-dividend date of this dividend is Wednesday, May 8th.

Silicon Motion Technology has decreased its dividend payment by an average of 29.1% annually over the last three years. Silicon Motion Technology has a dividend payout ratio of 42.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Silicon Motion Technology to earn $4.02 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 49.8%.

Silicon Motion Technology Price Performance

Shares of SIMO opened at $72.47 on Tuesday. The firm has a market cap of $2.40 billion, a P/E ratio of 45.87, a P/E/G ratio of 3.87 and a beta of 0.85. The stock has a 50 day simple moving average of $73.74 and a two-hundred day simple moving average of $64.68. Silicon Motion Technology has a 1 year low of $49.50 and a 1 year high of $95.33.

Silicon Motion Technology (NASDAQ:SIMO) last issued its earnings results on Tuesday, February 6th. The semiconductor producer reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.12. The business had revenue of $202.38 million during the quarter, compared to analyst estimates of $197.60 million. Silicon Motion Technology had a return on equity of 7.01% and a net margin of 8.27%. On average, equities analysts anticipate that Silicon Motion Technology will post 2.65 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages have issued reports on SIMO. Wedbush reaffirmed an “outperform” rating and issued a $85.00 target price on shares of Silicon Motion Technology in a research note on Wednesday, April 10th. B. Riley boosted their price objective on Silicon Motion Technology from $93.00 to $101.00 and gave the company a “buy” rating in a research report on Wednesday, April 10th. Craig Hallum boosted their price objective on Silicon Motion Technology from $75.00 to $80.00 and gave the company a “buy” rating in a research report on Wednesday, February 7th. Needham & Company LLC boosted their price objective on Silicon Motion Technology from $75.00 to $85.00 and gave the company a “buy” rating in a research report on Wednesday, April 10th. Finally, JPMorgan Chase & Co. boosted their price objective on Silicon Motion Technology from $77.00 to $85.00 and gave the company an “overweight” rating in a research report on Thursday, February 8th. One analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, Silicon Motion Technology presently has an average rating of “Moderate Buy” and a consensus price target of $87.57.

About Silicon Motion Technology

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.