Semtech (NASDAQ:SMTC) Trading 6.4% Higher – Here’s Why

Semtech Corporation (NASDAQ:SMTC) traded up 6.4% on Friday . The stock traded as high as $170.43 and last traded at $169.3780. Approximately 1,181,316 shares were traded during trading, a decline of 57% from the average daily volume of 2,744,295 shares. The stock had previously closed at $159.13.

Analysts Set New Price Targets

SMTC has been the topic of several research analyst reports. Mizuho set a $225.00 target price on shares of Semtech in a research report on Wednesday, May 27th. BMO Capital Markets started coverage on shares of Semtech in a research note on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 price objective for the company. TD Cowen upped their target price on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research report on Monday, June 22nd. Zacks Research cut shares of Semtech from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Finally, Northland Securities upgraded shares of Semtech from a “market perform” rating to an “outperform” rating and set a $182.00 price target for the company in a research report on Thursday, August 27th. Fifteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Semtech presently has an average rating of “Moderate Buy” and an average target price of $204.71.

Semtech Trading Up 6.8%

The firm has a market cap of $15.87 billion, a price-to-earnings ratio of 112.44 and a beta of 2.35. The business has a 50 day moving average of $133.22 and a 200 day moving average of $123.06. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.

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 business had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. During the same period last year, the company earned $0.41 earnings per share. The company’s quarterly revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, research analysts forecast that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Insider Activity at Semtech

In related news, COO Asaf Silberstein sold 8,500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total value 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. This trade represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of Semtech stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the transaction, the director directly owned 7,140 shares in the company, valued at approximately $1,035,300. This trade represents a 17.36% decrease in their ownership of the stock. 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 23,234 shares of company stock valued at $3,304,706 over the last three months. Insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Semtech

A number of hedge funds have recently made changes to their positions in SMTC. FNY Investment Advisers LLC lifted its holdings in shares of Semtech by 900.0% during 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. acquired a new stake in Semtech in the 2nd quarter valued at $32,000. Banque Cantonale Vaudoise purchased a new position in Semtech in the first quarter valued at about $33,000. IFP Advisors Inc acquired a new position in shares of Semtech during the fourth quarter worth about $53,000. Finally, Allworth Financial LP acquired a new position in shares of Semtech during the second quarter worth about $55,000.

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.

The company’s portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.