Semtech (NASDAQ:SMTC) Shares Gap Down – Should You Sell?

Semtech Corporation (NASDAQ:SMTC) shares gapped down prior to trading on Thursday. The stock had previously closed at $141.63, but opened at $132.33. Semtech shares last traded at $127.1130, with a volume of 556,747 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on SMTC shares. Stifel Nicolaus lowered their price target on Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. Weiss Ratings upgraded Semtech from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday. BMO Capital Markets increased their price objective on Semtech from $155.00 to $230.00 and gave the company an “outperform” rating in a research report on Tuesday, October 13th. Robert W. Baird raised their price objective on Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Finally, Needham & Company LLC restated a “buy” rating and issued a $200.00 target price on shares of Semtech in a research report on Wednesday, August 26th. 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.com, Semtech has an average rating of “Moderate Buy” and an average target price of $213.11.

Semtech Price Performance

The firm has a fifty day moving average of $156.98 and a two-hundred day moving average of $141.20. 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 company has a market capitalization of $12.32 billion, a PE ratio of 87.42 and a beta of 2.41.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $328.67 million. During the same period in the previous year, the firm earned $0.41 EPS. The business’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. Research analysts anticipate that Semtech Corporation will post 2.80 EPS for the current fiscal year.

Insider Buying and Selling at Semtech

In other Semtech news, Director Rodolpho Cardenuto sold 5,321 shares of the firm’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total value of $877,965.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Jason Elliot Green sold 2,766 shares of the business’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total transaction of $526,508.10. Following the completion of the transaction, the executive vice president owned 7,367 shares in the company, valued at $1,402,308.45. The trade was a 27.30% 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 have sold a total of 14,237 shares of company stock worth $2,337,597 over the last ninety days. 0.44% of the stock is owned by company insiders.

Institutional Trading of Semtech

Several large investors have recently modified their holdings of SMTC. BlackRock Inc. bought a new stake in Semtech during the 2nd quarter valued at approximately $1,577,947,000. ABS Investment Management LLC purchased a new position in shares of Semtech during the 2nd quarter worth approximately $178,035,000. Andar Capital Management HK Ltd purchased a new position in shares of Semtech during the 2nd quarter worth approximately $162,000,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Semtech by 396.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after acquiring an additional 672,447 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its position in shares of Semtech by 56.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 546,422 shares of the semiconductor company’s stock worth $97,454,000 after acquiring an additional 196,734 shares in the last quarter.

About Semtech

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.