CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Silicon Motion (SIMO) announces $200m stock buyback

By Andreas Ismar

09:25, 7 December 2021

NAND flash drive plugged into a computer
NAND flash drive plugged into a computer – Photo: Shutterstock

Silicon Motion earmarks $200m to buyback its American depository share (ADS) in the coming six months following its previous repurchase programme ended slightly over two weeks ago.

The company, which produces flash controllers used to manage the data stored in NAND flash memory and communicate with electronic devices, said the buyback is part of returning excess capital to shareholders.

“We have a long track record of returning excess capital to shareholders, primarily through dividends, but also through share repurchases. On October 25, we announced our annual dividend that is 43% higher than the previous one. We are now following up with a program to purchase up to $200 million of our ADSs over the next six months,” president and CEO Wallace Kou said in a statement.


0.62 Price
-1.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


2,023.46 Price
-2.230% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.50


15,708.70 Price
-1.750% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


41,328.95 Price
+4.030% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Continuation of previous buyback

The share buyback comes just slightly over two weeks after the previous one ended. In November 2018, the company set aside $200m to buyback shares for 24 months – which was then extended to 36 months.

The buybacks have created positive sentiment on the stock, with share price surging over 60% so far this year. In pre-market hours on Nasdaq on Tuesday, the stock rose 1.3%, extending a 1.2% gain on Monday.

Read more: Samsung Electronics (005930) merges consumer, mobile divisions

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading