Silicon Motion Technology’s (SIMO) “Buy” Rating Reaffirmed at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Silicon Motion Technology (NASDAQ:SIMO) in a research report released on Friday,Benzinga reports. They currently have a $70.00 price target on the semiconductor producer’s stock.

Several other research analysts also recently commented on SIMO. Wedbush reiterated an “outperform” rating and issued a $90.00 price objective on shares of Silicon Motion Technology in a report on Monday, December 23rd. Craig Hallum lowered their price objective 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. StockNews.com raised shares of Silicon Motion Technology from a “hold” rating to a “buy” rating in a research note on Wednesday. Finally, Susquehanna dropped their price target on shares of Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating for the company in a research report on Friday, November 1st. One investment analyst has rated the stock with a sell rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $81.11.

Silicon Motion Technology Stock Performance

NASDAQ SIMO opened at $52.80 on Friday. The company has a market capitalization of $1.78 billion, a P/E ratio of 19.63, a P/E/G ratio of 1.34 and a beta of 0.79. Silicon Motion Technology has a 52-week low of $48.81 and a 52-week high of $85.87. The company has a fifty day moving average of $54.63 and a 200-day 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 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, analysts forecast that Silicon Motion Technology will post 2.91 EPS for the current fiscal year.

Silicon Motion Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 27th. Investors of record on Thursday, February 13th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 3.79%. The ex-dividend date is Thursday, February 13th. Silicon Motion Technology’s payout ratio is 73.98%.

Silicon Motion Technology announced that its Board of Directors has authorized a stock buyback plan on Wednesday, February 5th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the semiconductor producer to reacquire up to 2.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Silicon Motion Technology

A number of hedge funds have recently bought and sold shares of SIMO. Truist Financial Corp purchased a new position in shares of Silicon Motion Technology in the 2nd quarter worth $236,000. Handelsbanken Fonder AB grew its holdings in Silicon Motion Technology by 17.0% during the third quarter. Handelsbanken Fonder AB now owns 10,300 shares of the semiconductor producer’s stock valued at $626,000 after purchasing an additional 1,500 shares during the period. Reinhart Partners LLC. increased its position in Silicon Motion Technology by 43.3% in the third quarter. Reinhart Partners LLC. now owns 1,080,375 shares of the semiconductor producer’s stock worth $65,622,000 after buying an additional 326,358 shares in the last quarter. Blue Trust Inc. raised its stake in shares of Silicon Motion Technology by 139.5% in the third quarter. Blue Trust Inc. now owns 1,365 shares of the semiconductor producer’s stock worth $83,000 after buying an additional 795 shares during the period. Finally, Schwartz Investment Counsel Inc. lifted its position in shares of Silicon Motion Technology by 26.7% during the 3rd quarter. Schwartz Investment Counsel Inc. now owns 190,000 shares of the semiconductor producer’s stock valued at $11,541,000 after buying an additional 40,000 shares in the last quarter. Hedge funds and other institutional investors own 78.02% of the company’s stock.

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.