According to Zacks, “Semtech’s strong performance in the industrial and communications markets continues to drive its top-line growth. Additionally, the company's product differentiation, operational flexibility and a specific focus on fast-growing segments and regions continue to be its key growth drivers, which is a positive. Notably, the stock has outperformed the industry it belongs to over a year. However, the company continues to be impacted by mounting competition in the semiconductor space, including slowing demand in China. The resultant pricing pressure continues to impact the company’s margins and profitability. Moreover, the seasonality in the consumer segment is a matter of concern.”
A number of other research firms also recently issued reports on SMTC. B. Riley boosted their price target on Semtech from $61.00 to $68.00 and gave the company a buy rating in a research note on Wednesday, February 27th. ValuEngine upgraded Semtech from a buy rating to a strong-buy rating in a research note on Friday, February 22nd. BidaskClub downgraded Semtech from a buy rating to a hold rating in a research note on Thursday, March 7th. Loop Capital upgraded Semtech to a buy rating in a research note on Monday, March 18th. Finally, Roth Capital downgraded Semtech from a buy rating to a neutral rating and set a $49.00 price target for the company. in a research note on Thursday, March 14th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and nine have given a buy rating to the company. Semtech has a consensus rating of Buy and an average price target of $59.00.
Semtech stock opened at $48.03 on Tuesday. The stock has a market cap of $3.15 billion, a price-to-earnings ratio of 36.11, a PEG ratio of 3.09 and a beta of 1.65. Semtech has a 52-week low of $41.28 and a 52-week high of $60.55. The company has a quick ratio of 3.25, a current ratio of 3.74 and a debt-to-equity ratio of 0.28.
Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Wednesday, March 13th. The semiconductor company reported $0.55 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.53 by $0.02. The business had revenue of $160.00 million during the quarter, compared to the consensus estimate of $158.48 million. Semtech had a return on equity of 13.94% and a net margin of 10.05%. The business’s quarterly revenue was up 13.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.42 EPS. On average, sell-side analysts expect that Semtech will post 1.22 earnings per share for the current fiscal year.
In related news, CFO Emeka Chukwu sold 1,100 shares of the business’s stock in a transaction that occurred on Thursday, February 28th. The stock was sold at an average price of $54.97, for a total transaction of $60,467.00. Following the completion of the transaction, the chief financial officer now directly owns 98,297 shares in the company, valued at approximately $5,403,386.09. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ye Jane Li sold 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 20th. The shares were sold at an average price of $54.97, for a total value of $274,850.00. Following the transaction, the director now owns 7,328 shares of the company’s stock, valued at $402,820.16. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 123,614 shares of company stock valued at $6,667,466. 1.96% of the stock is currently owned by corporate insiders.
Several large investors have recently made changes to their positions in SMTC. Pearl River Capital LLC bought a new position in Semtech in the 4th quarter worth approximately $25,000. Oregon Public Employees Retirement Fund bought a new position in Semtech in the 4th quarter worth approximately $25,000. Cutler Group LP bought a new position in Semtech in the 4th quarter worth approximately $27,000. Cullen Frost Bankers Inc. bought a new position in Semtech in the 1st quarter worth approximately $27,000. Finally, Enlightenment Research LLC bought a new position in Semtech in the 4th quarter worth approximately $28,000. Institutional investors own 97.75% of the company’s stock.
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, and communications applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.
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