Semtech (NASDAQ:SMTC) Shares Break Below Two Hundred Day Moving Average – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s stock price crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $124.91 and traded as low as $121.67. Semtech shares last traded at $122.38, with a volume of 2,653,779 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on SMTC. Seaport Research Partners began coverage on shares of Semtech in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $200.00 price objective for the company. Northland Securities raised shares of Semtech from a “market perform” rating to an “outperform” rating and set a $186.00 target price on the stock in a research note on Friday, October 16th. Roth Capital set a $220.00 target price on Semtech in a report on Wednesday, August 26th. Oppenheimer raised their target price on Semtech from $200.00 to $225.00 and gave the stock an “outperform” rating in a research report on Thursday, October 1st. Finally, Wall Street Zen raised Semtech from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Semtech currently has an average rating of “Moderate Buy” and an average target price of $213.11.

Semtech Stock Down 12.9%

The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $10.36 billion, a PE ratio of 73.48 and a beta of 2.50. The business’s 50-day moving average price is $156.92 and its 200-day moving average price is $125.35.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the firm posted $0.41 earnings per share. The firm’s revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, equities research analysts predict that Semtech Corporation will post 2.80 EPS for the current fiscal year.

Insider Buying and Selling at Semtech

In related news, CEO Hong Q. Hou sold 2,000 shares of Semtech stock in a transaction on Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the completion of the sale, the chief executive officer owned 60,799 shares of the company’s stock, valued at approximately $8,433,429.29. This trade represents a 3.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 967 shares of the business’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $178.87, for a total value of $172,967.29. Following the completion of the transaction, the chief financial officer owned 35,999 shares in the company, valued at $6,439,141.13. This trade represents a 2.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,237 shares of company stock worth $2,337,597 over the last 90 days. 0.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Semtech

A number of hedge funds and other institutional investors have recently made changes to their positions in SMTC. REAP Financial Group LLC bought a new stake in shares of Semtech during the 3rd quarter worth about $27,000. ABS Investment Management LLC acquired a new position in shares of Semtech during the 2nd quarter valued at about $178,035,000. FNY Investment Advisers LLC raised its stake in shares of Semtech by 900.0% in the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after acquiring an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Semtech in the 2nd quarter valued at approximately $32,000. Finally, Pension & Wealth Management Advisors Inc. bought a new position in shares of Semtech in the 3rd quarter valued at approximately $53,000.

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company’s products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.