Semtech (NASDAQ:SMTC) Hits New 12-Month High – Still a Buy?

Semtech Corporation (NASDAQ:SMTC)’s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $79.59 and last traded at $79.22, with a volume of 954342 shares. The stock had previously closed at $73.46.

Analysts Set New Price Targets

A number of brokerages have commented on SMTC. Summit Insights upgraded Semtech from a “hold” rating to a “buy” rating in a report on Tuesday, November 25th. Cowen began coverage on shares of Semtech in a research report on Tuesday, September 30th. They issued a “buy” rating for the company. UBS Group restated a “buy” rating on shares of Semtech in a report on Tuesday, November 25th. Morgan Stanley set a $67.00 price objective on shares of Semtech in a research note on Tuesday, November 25th. Finally, Oppenheimer reissued an “outperform” rating and set a $81.00 target price on shares of Semtech in a research report on Tuesday, November 25th. Fifteen investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $76.71.

Semtech Stock Performance

The company’s 50 day moving average price is $69.47 and its 200-day moving average price is $56.42. The stock has a market cap of $7.37 billion, a P/E ratio of 256.81 and a beta of 2.01. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.71 and a current ratio of 2.43.

Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Monday, November 24th. The semiconductor company reported $0.48 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.03. The business had revenue of $266.97 million for the quarter, compared to analysts’ expectations of $266.36 million. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The firm’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.26 earnings per share. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. Equities analysts forecast that Semtech Corporation will post -0.02 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Mark Lin sold 971 shares of the business’s stock in a transaction dated Friday, October 3rd. The shares were sold at an average price of $72.83, for a total value of $70,717.93. Following the transaction, the chief financial officer directly owned 17,844 shares of the company’s stock, valued at approximately $1,299,578.52. The trade was a 5.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Paul V. Walsh, Jr. sold 500 shares of the stock in a transaction dated Wednesday, October 22nd. The shares were sold at an average price of $66.24, for a total transaction of $33,120.00. Following the transaction, the director owned 26,779 shares of the company’s stock, valued at approximately $1,773,840.96. The trade was a 1.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 4,971 shares of company stock valued at $323,463. Insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Hantz Financial Services Inc. lifted its position in shares of Semtech by 243.2% during the third quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company’s stock worth $36,000 after acquiring an additional 360 shares in the last quarter. Salomon & Ludwin LLC purchased a new position in shares of Semtech in the 3rd quarter worth about $41,000. AlphaQuest LLC boosted its stake in Semtech by 42.5% in the third quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company’s stock worth $41,000 after buying an additional 173 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Semtech by 65.5% during the 3rd quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 235 shares during the last quarter. Finally, Assetmark Inc. grew its stake in shares of Semtech by 1,745.5% during the third quarter. Assetmark Inc. now owns 609 shares of the semiconductor company’s stock valued at $44,000 after buying an additional 576 shares during the last quarter.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial 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.