Semtech (NASDAQ:SMTC) Stock Price Down 5% – Should You Sell?

Shares of Semtech Corporation (NASDAQ:SMTC) dropped 5% during mid-day trading on Wednesday . The stock traded as low as $154.00 and last traded at $153.4610. 1,061,897 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 2,415,624 shares. The stock had previously closed at $161.59.

Analysts Set New Price Targets

A number of brokerages recently commented on SMTC. Northland Securities lowered Semtech from an “outperform” rating to a “market perform” rating in a report on Tuesday, May 26th. Citigroup cut Semtech from a “buy” rating to a “market perform” rating in a research note on Tuesday, May 26th. TD Cowen restated a “buy” rating on shares of Semtech in a research report on Tuesday, February 24th. Weiss Ratings lowered shares of Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Tuesday, March 24th. Finally, Stifel Nicolaus boosted their target price on shares of Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Thirteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $179.73.

Semtech Price Performance

The firm has a 50 day moving average price of $131.82 and a two-hundred day moving average price of $98.47. The company has a market cap of $14.74 billion, a P/E ratio of -405.72 and a beta of 2.32. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. The business had revenue of $291.02 million for the quarter, compared to the consensus estimate of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The company’s revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, analysts predict that Semtech Corporation will post 1.81 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Paul V. Walsh, Jr. sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total value of $69,105.00. Following the completion of the transaction, the director directly owned 23,279 shares of the company’s stock, valued at approximately $3,217,390.59. This trade represents a 2.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of Semtech stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $90.11, for a total transaction of $180,220.00. Following the completion of the transaction, the chief executive officer owned 73,228 shares of the company’s stock, valued at $6,598,575.08. This represents a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 25,160 shares of company stock worth $2,227,705 in the last 90 days. 0.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Semtech

Hedge funds have recently made changes to their positions in the stock. Banque Cantonale Vaudoise purchased a new stake in Semtech during the 1st quarter worth about $33,000. Jones Financial Companies Lllp grew its holdings in 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 buying an additional 235 shares in the last quarter. Assetmark Inc. increased its position 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 period. IFP Advisors Inc bought a new stake in shares of Semtech during the fourth quarter valued at about $53,000. Finally, Huntington National Bank lifted its holdings in shares of Semtech by 151.3% in the third quarter. Huntington National Bank now owns 749 shares of the semiconductor company’s stock worth $54,000 after buying an additional 451 shares in the last quarter.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.