Semtech (NASDAQ:SMTC) Shares Gap Up – What’s Next?

Semtech Corporation (NASDAQ:SMTC)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $132.15, but opened at $145.04. Semtech shares last traded at $141.3330, with a volume of 546,478 shares changing hands.

Analyst Ratings Changes

Several brokerages recently weighed in on SMTC. Oppenheimer set a $200.00 target price on shares of Semtech in a report on Wednesday, May 27th. Benchmark boosted their price objective on Semtech from $120.00 to $230.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Robert W. Baird upped their price objective on Semtech from $110.00 to $225.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a research report on Thursday, June 18th. Finally, UBS Group lifted their target price on Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $189.07.

Semtech Stock Performance

The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. The stock has a market capitalization of $12.60 billion, a PE ratio of -346.72 and a beta of 2.31. The firm has a fifty day moving average price of $149.28 and a two-hundred day moving average price of $108.00.

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

Insiders Place Their Bets

In related news, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the completion of the transaction, the chief executive officer directly owned 64,799 shares of the company’s stock, valued at $8,618,267. This trade represents a 2.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of the firm’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $170.00, for a total transaction of $935,000.00. Following the completion of the transaction, the insider directly owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. This represents a 6.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,734 shares of company stock valued at $3,256,056 in the last three months. 0.48% of the stock is currently owned by insiders.

Institutional Trading of Semtech

Several hedge funds and other institutional investors have recently bought and sold shares of SMTC. Royce & Associates LP lifted its position in shares of Semtech by 144.5% in the fourth quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company’s stock valued at $7,930,000 after acquiring an additional 63,603 shares in the last quarter. Argos Wealth Advisors LLC acquired a new position in Semtech during the fourth quarter worth $640,000. Geode Capital Management LLC grew its holdings in shares of Semtech by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock valued at $154,704,000 after purchasing an additional 6,715 shares during the period. Allspring Global Investments Holdings LLC grew its stake in shares of Semtech by 21.7% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 155,576 shares of the semiconductor company’s stock valued at $11,709,000 after buying an additional 27,781 shares during the period. Finally, Strs Ohio grew its position in Semtech by 558.9% in the fourth quarter. Strs Ohio now owns 48,100 shares of the semiconductor company’s stock worth $3,544,000 after acquiring an additional 40,800 shares during the period.

Semtech Company Profile

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.