Semtech (NASDAQ:SMTC) Trading 7.5% Higher – Should You Buy?

Semtech Corporation (NASDAQ:SMTC)’s stock price traded up 7.5% during mid-day trading on Monday . The company traded as high as $152.50 and last traded at $150.90. 446,907 shares traded hands during trading, a decline of 83% from the average daily volume of 2,637,644 shares. The stock had previously closed at $140.35.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Craig Hallum upped their price target on Semtech from $105.00 to $205.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Benchmark boosted their target price on Semtech from $120.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. TD Cowen upped their target price on Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Oppenheimer set a $200.00 price target on Semtech in a research note on Wednesday, May 27th. Finally, Mizuho set a $225.00 price target on shares of Semtech in a report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $189.07.

Semtech Stock Down 12.3%

The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The company’s fifty day simple moving average is $140.08 and its 200 day simple moving average is $116.78. The firm has a market capitalization of $12.60 billion, a PE ratio of -346.74 and a beta of 2.35.

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

Insider Buying and Selling

In other Semtech news, Director Paul V. Walsh, Jr. sold 500 shares of the firm’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total transaction of $82,495.00. Following the completion of the transaction, the director owned 28,100 shares of the company’s stock, valued at approximately $4,636,219. This trade represents a 1.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the business’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the sale, the executive vice president owned 8,611 shares in the company, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their position. 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 21,734 shares of company stock valued at $3,133,986 over the last 90 days. 0.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. ABS Investment Management LLC purchased a new stake in Semtech in the second quarter worth about $178,035,000. FNY Investment Advisers LLC lifted its holdings in shares of Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Semtech in the 2nd quarter worth approximately $32,000. Allworth Financial LP bought a new stake in shares of Semtech in the 2nd quarter worth approximately $55,000. Finally, Allied Private Wealth LLC purchased a new stake in shares of Semtech in the 2nd quarter worth approximately $65,000.

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.