Bank of America upgraded shares of Silicon Motion Technology (NASDAQ:SIMO) from an underperform rating to a buy rating in a research note issued to investors on Friday, January 18th, MarketBeat.com reports. Bank of America currently has $45.00 target price on the semiconductor producer’s stock.
SIMO has been the topic of a number of other research reports. BidaskClub downgraded shares of Silicon Motion Technology from a sell rating to a strong sell rating in a research report on Wednesday, October 31st. TheStreet downgraded shares of Silicon Motion Technology from a b- rating to a c+ rating in a research report on Friday, January 11th. Needham & Company LLC reaffirmed a buy rating and issued a $50.00 price objective (down previously from $58.00) on shares of Silicon Motion Technology in a research report on Thursday, January 17th. KeyCorp started coverage on shares of Silicon Motion Technology in a research report on Tuesday, September 25th. They issued a sector weight rating and a $60.00 price objective on the stock. Finally, 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. One analyst has rated the stock with a sell rating, four have issued a hold rating and nine have issued a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus target price of $51.95.
SIMO traded down $0.38 on Friday, reaching $40.22. 213,121 shares of the company traded hands, compared to its average volume of 490,254. The firm has a market capitalization of $1.47 billion, a price-to-earnings ratio of 11.79 and a beta of 1.04. Silicon Motion Technology has a one year low of $31.73 and a one year high of $61.85.
Silicon Motion Technology (NASDAQ:SIMO) last posted its earnings results on Tuesday, January 29th. The semiconductor producer reported $0.83 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.30. The business had revenue of $123.39 million for the quarter, compared to the consensus estimate of $123.21 million. Silicon Motion Technology had a net margin of 18.91% and a return on equity of 21.30%. During the same quarter last year, the firm posted $0.79 EPS. Equities analysts predict that Silicon Motion Technology will post 2.25 EPS for the current year.
Silicon Motion Technology announced that its Board of Directors has approved a stock repurchase plan on Wednesday, November 21st that allows the company to buyback $200.00 million in shares. This buyback authorization allows the semiconductor producer to purchase up to 15.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.
The firm also recently disclosed a special dividend, which will be paid on Wednesday, February 27th. Shareholders of record on Friday, February 15th will be paid a dividend of $0.30 per share. This represents a yield of 3.41%. This is a boost from Silicon Motion Technology’s previous special dividend of $0.15. The ex-dividend date is Thursday, February 14th. Silicon Motion Technology’s payout ratio is presently 34.90%.
A number of hedge funds and other institutional investors have recently made changes to their positions in SIMO. JPMorgan Chase & Co. lifted its stake in Silicon Motion Technology by 25.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,206,624 shares of the semiconductor producer’s stock valued at $64,796,000 after acquiring an additional 247,658 shares during the period. Investec Asset Management LTD lifted its stake in shares of Silicon Motion Technology by 15.3% in the 4th quarter. Investec Asset Management LTD now owns 1,667,213 shares of the semiconductor producer’s stock valued at $57,519,000 after purchasing an additional 220,976 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in shares of Silicon Motion Technology by 8.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,733,523 shares of the semiconductor producer’s stock valued at $94,307,000 after purchasing an additional 203,157 shares during the period. ARGA Investment Management LP lifted its stake in shares of Silicon Motion Technology by 10.0% in the 4th quarter. ARGA Investment Management LP now owns 1,922,113 shares of the semiconductor producer’s stock valued at $66,313,000 after purchasing an additional 175,382 shares during the period. Finally, Zweig DiMenna Associates LLC acquired a new position in shares of Silicon Motion Technology in the 3rd quarter valued at $5,773,000. Institutional investors and hedge funds own 73.31% of the company’s stock.
Silicon Motion Technology Company Profile
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.
Further Reading: Trading Options- What is a Strangle?
Receive News & Ratings for Silicon Motion Technology Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Silicon Motion Technology and related companies with MarketBeat.com’s FREE daily email newsletter.