TLDR
- SK Hynix will announce shareholder return measures with Q3 earnings on Wednesday.
- A Korean report says a special dividend of about 16 trillion won ($12 billion) is under review.
- The payout would be funded by gains from the sale of its Kioxia stake.
- SKHY opened at $137.02 on Monday, well below its 50-day average of $170.08.
- SK Hynix paused the planned U.S. listing of its Solidigm unit on Friday.
SK Hynix (SKHY) stock opened at $137.02 on Monday. That sits well below its 50-day average of $170.08 and its one-year high of $199.87.
The one-year low is $124.80. The company has a market cap of $1.00 trillion and a P/E ratio of 10.85.
The chipmaker will announce shareholder return measures on Wednesday with third-quarter results. The timing came after a local report said a big payout is on the table.
Dong-A Ilbo reported that SK Hynix is weighing a special dividend of about 16 trillion won, or roughly $12 billion. That is a hefty check, and it would come from the sale of its stake in Japanese memory maker Kioxia.
SK Hynix has not shared details of that sale, which closed earlier this year. Analysts think it booked large investment gains.
The company put about 4 trillion won into Kioxia in 2018. It joined a Bain Capital-led group of U.S., Japanese and South Korean investors.
The stock exchange asked about the report, and SK Hynix said it is “reviewing various shareholder return measures.” It did not say more.
Investors want more cash back
SK Hynix and Samsung Electronics have heard growing calls to return more cash. Record profits from AI memory chip demand have fueled those calls.
The pressure picked up after both stocks fell from record highs set in June. Some of the drop came from doubts about how long U.S. tech firms will keep spending on AI.
In August, SK Hynix said it would buy back and cancel 40 trillion won of its own stock. It also plans to put more than 50% of free cash flow from 2025 to 2027 toward returns.
Bank of America reportedly expects both companies to raise payouts as memory demand holds up. A separate report said the consensus price target on the depositary receipt rose 10.49% to $358.34.
In Seoul on Monday, SK Hynix stock rose 0.5%. The broader market fell 1.3%.
Solidigm plan on hold
SK Hynix said it paused a planned U.S. listing for its Solidigm unit. It cited market volatility, stock price trends and concerns about a duplicate listing.
Some investors saw the move as lowering execution and dilution risks. The catch is that Solidigm will not raise public money for now.
MarketBeat shows a consensus “Buy” rating and a $253.22 price target. Four analysts rate it Strong Buy, nine rate it Buy and two rate it Hold.
Rosenblatt has the high target at $320, while Wolfe Research is at $250. Needham sits at $220 and RBC at $200.
SK Hynix last reported earnings on August 18, with EPS of $8.48 and revenue of $51.19 billion. Analysts expect full-year EPS of 25.69, and the next report lands Wednesday.
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