Share Buyback Plan Initiated by Silicon Motion Technology Corporation (NASDAQ:SIMO) Board

Silicon Motion Technology Corporation (NASDAQ:SIMO) declared that its Board of Directors has approved a share buyback program, which authorizes the company to buyback $200.00 million in outstanding shares on Monday, July 31st, EventVestor reports. This buyback authorization authorizes the semiconductor producer to repurchase up to 13.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

A number of brokerages have recently commented on SIMO. B. Riley reaffirmed a “buy” rating and set a $68.75 target price on shares of Silicon Motion Technology Corporation in a research report on Wednesday, April 26th. ValuEngine lowered shares of Silicon Motion Technology Corporation from a “buy” rating to a “hold” rating in a research report on Friday, June 16th. Lake Street Capital reaffirmed a “buy” rating and set a $50.00 target price (down from $56.00) on shares of Silicon Motion Technology Corporation in a research report on Wednesday. Loop Capital reaffirmed a “buy” rating and set a $61.00 target price (up from $53.00) on shares of Silicon Motion Technology Corporation in a research report on Tuesday, June 6th. Finally, Standpoint Research lowered shares of Silicon Motion Technology Corporation from a “buy” rating to a “reduce” rating in a research report on Tuesday, June 6th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and ten have given a buy rating to the stock. Silicon Motion Technology Corporation currently has a consensus rating of “Hold” and an average price target of $56.84.

Shares of Silicon Motion Technology Corporation (SIMO) opened at 42.59 on Friday. The firm has a market capitalization of $1.51 billion, a P/E ratio of 13.66 and a beta of 0.68. Silicon Motion Technology Corporation has a 52 week low of $37.37 and a 52 week high of $56.25. The firm has a 50-day moving average of $46.68 and a 200 day moving average of $45.85.

Silicon Motion Technology Corporation (NASDAQ:SIMO) last announced its earnings results on Monday, July 31st. The semiconductor producer reported $0.69 earnings per share for the quarter, missing the consensus estimate of $0.73 by $0.04. Silicon Motion Technology Corporation had a return on equity of 24.24% and a net margin of 18.91%. The business had revenue of $132.70 million for the quarter, compared to analysts’ expectations of $132.92 million. During the same period in the previous year, the company earned $0.86 earnings per share. Silicon Motion Technology Corporation’s quarterly revenue was down 5.7% on a year-over-year basis. On average, equities research analysts expect that Silicon Motion Technology Corporation will post $2.67 EPS for the current fiscal year.

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About Silicon Motion Technology Corporation

Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices.