Semtech (NASDAQ:SMTC) Earns “Outperform” Rating from Oppenheimer

Semtech (NASDAQ:SMTC)‘s stock had its “outperform” rating reissued by equities researchers at Oppenheimer in a report released on Tuesday,Benzinga reports. They currently have a $100.00 target price on the semiconductor company’s stock, up from their prior target price of $81.00. Oppenheimer’s target price would indicate a potential upside of 14.52% from the stock’s current price.

A number of other brokerages have also recently commented on SMTC. Needham & Company LLC reaffirmed a “buy” rating and issued a $80.00 target price on shares of Semtech in a report on Tuesday, November 25th. Wall Street Zen downgraded Semtech from a “strong-buy” rating to a “buy” rating in a research note on Monday, January 26th. Morgan Stanley set a $67.00 target price on Semtech in a research note on Tuesday, November 25th. Stifel Nicolaus boosted their target price on Semtech from $80.00 to $90.00 and gave the company a “buy” rating in a report on Friday, January 16th. Finally, B. Riley Financial increased their price target on Semtech from $90.00 to $91.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. Fourteen analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $84.14.

Semtech Stock Performance

SMTC stock traded up $2.18 on Tuesday, hitting $87.32. The company’s stock had a trading volume of 150,575 shares, compared to its average volume of 1,460,190. The stock has a market cap of $8.08 billion, a price-to-earnings ratio of 281.72 and a beta of 1.99. The firm has a 50 day moving average of $82.80 and a two-hundred day moving average of $73.02. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.87. Semtech has a 1 year low of $24.05 and a 1 year high of $96.46.

Insiders Place Their Bets

In related news, COO Asaf Silberstein sold 10,000 shares of the company’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $92.00, for a total transaction of $920,000.00. Following the transaction, the chief operating officer owned 68,496 shares of the company’s stock, valued at $6,301,632. This represents a 12.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider John Michael Wilson sold 5,000 shares of the stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $75.12, for a total value of $375,600.00. Following the completion of the transaction, the insider owned 60,066 shares of the company’s stock, valued at $4,512,157.92. The trade was a 7.68% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 33,549 shares of company stock worth $2,787,350. Corporate insiders own 0.48% of the company’s stock.

Institutional Trading of Semtech

A number of institutional investors have recently added to or reduced their stakes in the stock. Evergreen Capital Management LLC grew its holdings in shares of Semtech by 2.3% during the fourth quarter. Evergreen Capital Management LLC now owns 5,945 shares of the semiconductor company’s stock worth $438,000 after buying an additional 136 shares in the last quarter. Stephens Inc. AR grew its stake in Semtech by 3.3% in the 4th quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company’s stock worth $325,000 after acquiring an additional 142 shares during the period. Journey Strategic Wealth LLC raised its holdings in Semtech by 3.2% in the 3rd quarter. Journey Strategic Wealth LLC now owns 5,074 shares of the semiconductor company’s stock valued at $363,000 after acquiring an additional 159 shares during the last quarter. Captrust Financial Advisors lifted its stake in shares of Semtech by 0.8% during the 4th quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company’s stock worth $1,422,000 after purchasing an additional 162 shares during the period. Finally, AlphaQuest LLC lifted its stake in shares of Semtech by 42.5% during the 3rd quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company’s stock worth $41,000 after purchasing an additional 173 shares during the period.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech announced the FX86E 5G RedCap modem targeted at industrial IoT — a product that can expand addressable markets for modules and plug-and-play connectivity across public/private 5G and LTE networks. Read More.
• Positive Sentiment: Semtech partnered with Digital Barriers to deliver an integrated, AI-powered device-to-cloud video compression solution for cellular surveillance and analytics — a turnkey offering that could drive module shipments and recurring connectivity/service revenue. Read More.
• Positive Sentiment: Analyst and media attention has turned more bullish: Susquehanna raised its target to $100 and sector write-ups highlight Semtech as part of the AI infrastructure theme — both support a re-rating narrative if revenue from AI/data-center and IoT ramps. Read More.
• Neutral Sentiment: Technical/valuation context: SMTC is trading above its 50- and 200-day moving averages, market cap near $8B and a very high P/E reflecting growth expectations — positive if execution continues, but increases sensitivity to missed targets. Read More.
• Negative Sentiment: Insider selling: CFO Mark Lin sold 6,582 shares (filed in an SEC Form 4), reducing his stake by ~23% — a disclosure that can introduce short-term caution among some investors. Read More.

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.