Semtech (NASDAQ:SMTC) Shares Up 9.9% – What’s Next?

Semtech Corporation (NASDAQ:SMTC)’s share price rose 9.9% during mid-day trading on Monday . The stock traded as high as $87.94 and last traded at $87.66. Approximately 503,301 shares were traded during trading, a decline of 62% from the average daily volume of 1,333,412 shares. The stock had previously closed at $79.75.

Analysts Set New Price Targets

A number of research firms have issued reports on SMTC. Piper Sandler reaffirmed an “overweight” rating and issued a $95.00 price objective (up previously from $70.00) on shares of Semtech in a research note on Thursday, December 11th. Oppenheimer restated an “outperform” rating and issued a $81.00 price target on shares of Semtech in a research report on Tuesday, November 25th. Robert W. Baird increased their price target on shares of Semtech from $70.00 to $88.00 and gave the company an “outperform” rating in a report on Tuesday, November 25th. UBS Group reiterated a “buy” rating on shares of Semtech in a research report on Tuesday, November 25th. Finally, Susquehanna upped their price objective on Semtech from $65.00 to $80.00 and gave the company a “positive” rating in a research report on Tuesday, November 18th. Fourteen equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Semtech has an average rating of “Moderate Buy” and a consensus price target of $79.21.

Semtech Stock Performance

The company has a debt-to-equity ratio of 0.87, a current ratio of 2.43 and a quick ratio of 1.71. The company has a market cap of $8.15 billion, a PE ratio of 284.34 and a beta of 2.01. The business has a fifty day simple moving average of $75.99 and a two-hundred day simple moving average of $66.37.

Semtech (NASDAQ:SMTC) last posted its earnings results on Monday, November 24th. The semiconductor company reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.03. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The company had revenue of $266.97 million during the quarter, compared to analysts’ expectations of $266.36 million. During the same quarter in the prior year, the company posted $0.26 earnings per share. Semtech’s revenue for the quarter was up 12.8% compared to the same quarter last year. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. Research analysts anticipate that Semtech Corporation will post -0.02 earnings per share for the current year.

Insider Activity

In other Semtech news, Director Saar Gillai sold 3,600 shares of the firm’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $75.26, for a total value of $270,936.00. Following the sale, the director directly owned 9,523 shares of the company’s stock, valued at approximately $716,700.98. This trade represents a 27.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider John Michael Wilson sold 5,000 shares of the stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $75.12, for a total value of $375,600.00. Following the transaction, the insider owned 60,066 shares in the company, valued at $4,512,157.92. This trade represents a 7.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 16,967 shares of company stock valued at $1,316,108 over the last 90 days. Company insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Semtech

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nordea Investment Management AB purchased a new stake in Semtech during the 2nd quarter valued at approximately $4,230,000. EFG Asset Management North America Corp. lifted its holdings in Semtech by 15.6% in the second quarter. EFG Asset Management North America Corp. now owns 94,872 shares of the semiconductor company’s stock valued at $4,282,000 after acquiring an additional 12,796 shares during the period. Lisanti Capital Growth LLC purchased a new stake in Semtech during the third quarter worth about $4,318,000. New York State Common Retirement Fund grew its holdings in shares of Semtech by 55.7% in the 3rd quarter. New York State Common Retirement Fund now owns 277,661 shares of the semiconductor company’s stock worth $19,839,000 after acquiring an additional 99,335 shares during the period. Finally, Allspring Global Investments Holdings LLC acquired a new stake in Semtech in the third quarter valued at $9,160,000.

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.