Semtech (NASDAQ:SMTC) Shares Gap Up – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s share price gapped up prior to trading on Friday. The stock had previously closed at $91.54, but opened at $101.86. Semtech shares last traded at $97.25, with a volume of 495,476 shares changing hands.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Morgan Stanley set a $205.00 price objective on shares of Semtech in a research note on Friday, October 16th. Northland Securities upgraded Semtech from a “market perform” rating to an “outperform” rating and set a $186.00 price objective for the company in a research report on Friday, October 16th. UBS Group upped their price objective on Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Wednesday, August 26th. Seaport Research Partners began coverage on shares of Semtech in a report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 target price for the company. Finally, Robert W. Baird raised their price target on Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. One 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 stock. According to data from MarketBeat, Semtech currently has a consensus rating of “Moderate Buy” and an average target price of $213.11.

Semtech Stock Performance

The firm has a market cap of $9.01 billion, a price-to-earnings ratio of 63.67 and a beta of 2.50. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The stock’s 50 day moving average is $155.93 and its 200 day moving average is $125.42.

Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The business had revenue of $341.87 million during the quarter, compared to analysts’ expectations of $328.67 million. During the same period last year, the firm posted $0.41 EPS. The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts anticipate that Semtech Corporation will post 2.80 earnings per share for the current year.

Insider Activity at Semtech

In related news, Director Rodolpho C. Cardenuto sold 5,321 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $877,965.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Mark Lin sold 967 shares of the firm’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 sale, the chief financial officer directly owned 35,999 shares in the company, valued at $6,439,141.13. This trade represents a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 14,237 shares of company stock valued at $2,337,597. 0.44% of the stock is currently owned by company insiders.

Institutional Trading of Semtech

Several hedge funds and other institutional investors have recently made changes to their positions in SMTC. Osterweis Capital Management Inc. acquired a new stake in Semtech in the second quarter valued at $9,783,000. Canada Pension Plan Investment Board bought a new stake in Semtech in the 2nd quarter valued at about $39,313,000. Swiss National Bank raised its position in shares of Semtech by 6.9% during the first quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company’s stock worth $14,071,000 after purchasing an additional 11,800 shares during the period. Nicholas Investment Partners LP acquired a new position in Semtech during the second quarter worth $13,673,000. Finally, Sei Investments Co. raised its holdings in shares of Semtech by 65.9% in the 1st quarter. Sei Investments Co. now owns 357,875 shares of the semiconductor company’s stock worth $27,517,000 after acquiring an additional 142,197 shares during the last quarter.

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.