Cypress Semiconductor Corporation (NASDAQ:CY) announced that its Board of Directors approved a quarterly cash dividend of $0.11 per share payable to holders of record of the Company’s common stock at the close of business on December 31, 2015. This dividend will be paid on January 21, 2016.
We expect that the dividend, which will be paid from U.S. domestic sources other than the Company’s retained earnings, will be treated as a return of capital for U.S. tax purposes for the 2016 fiscal year. However, the characterization of dividend treatment, which is determined on the last day of the fiscal year, can be affected by transactions, the impact of which cannot be determined until after year-end.
Cypress’s dividend policy, and the payment of cash dividends under that policy, are subject to the Board’s continuing determination that the dividend policy, and the declaration of dividends, are in the best interests of Cypress’s stockholders and are in compliance with all laws and agreements of Cypress applicable to the declaration and payment of cash dividends. The dividend policy may be changed or canceled at the Company’s discretion at any time. (Original Source)
Shares of Cypress Semiconductor closed last Friday at $10.64. CY has a 1-year high of $16.25 and a 1-year low of $8.11. The stock’s 50-day moving average is $9.54 and its 200-day moving average is $11.08.
On the ratings front, Cypress Semiconductor has been the subject of a number of recent research reports. In a report issued on October 23, Pacific Crest analyst John Vinh maintained a Buy rating on CY, with a price target of $13, which represents a potential upside of 22.2% from where the stock is currently trading. Separately, on the same day, Needham’s Rajvindra Gill reiterated a Buy rating on the stock and has a price target of $12.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Vinh and Rajvindra Gill have a total average return of 4.4% and 17.9% respectively. Vinh has a success rate of 42.3% and is ranked #1203 out of 3829 analysts, while Gill has a success rate of 60.6% and is ranked #34.
The street is mostly Bullish on CY stock. Out of 5 analysts who cover the stock, 5 suggest a Buy rating . The 12-month average price target assigned to the stock is $15.50, which represents a potential upside of 45.7% from where the stock is currently trading.
Cypress Semiconductor Corp with its subsidiaries, designs, develops, manufactures and markets high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and system value.