Semtech (NASDAQ:SMTC) Trading Up 5.9% – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s stock price shot up 5.9% during mid-day trading on Friday . The stock traded as high as $143.99 and last traded at $143.3650. Approximately 664,222 shares were traded during mid-day trading, a decline of 76% from the average session volume of 2,726,650 shares. The stock had previously closed at $135.40.

Analyst Upgrades and Downgrades

SMTC has been the subject of a number of recent analyst reports. Citigroup downgraded Semtech from a “buy” rating to a “market perform” rating in a research report on Tuesday, May 26th. Needham & Company LLC restated a “buy” rating and issued a $200.00 target price on shares of Semtech in a report on Wednesday, August 26th. Wall Street Zen upgraded shares of Semtech from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. Morgan Stanley upped their target price on Semtech from $175.00 to $195.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. Finally, Susquehanna lifted their price target on Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research report on Wednesday, May 27th. Fifteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $204.71.

Semtech Trading Up 8.3%

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The company has a market cap of $13.69 billion, a P/E ratio of 97.23 and a beta of 2.35. The stock’s 50-day moving average is $132.59 and its two-hundred day moving average is $120.61.

Semtech (NASDAQ:SMTC) last released its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. During the same period in the prior year, the firm posted $0.41 EPS. The firm’s quarterly revenue was up 32.7% compared to the same quarter last year. 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 2.64 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other news, EVP Jason Elliot Green sold 2,264 shares of the firm’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 8,611 shares of the company’s stock, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The sale was disclosed in a legal 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, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the transaction, the chief operating officer owned 96,862 shares in the company, valued at approximately $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. 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 have sold 19,734 shares of company stock worth $2,809,786 over the last quarter. 0.44% of the stock is owned by insiders.

Hedge Funds Weigh In On Semtech

A number of large investors have recently bought and sold shares of SMTC. FNY Investment Advisers LLC increased its stake 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 worth $32,000 after purchasing an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Semtech during the second quarter valued at approximately $32,000. Banque Cantonale Vaudoise purchased a new position in shares of Semtech in the first quarter valued at approximately $33,000. IFP Advisors Inc acquired a new stake in shares of Semtech in the fourth quarter worth approximately $53,000. Finally, Allworth Financial LP purchased a new stake in shares of Semtech during the second quarter worth approximately $55,000.

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.