Semtech (NASDAQ:SMTC) Trading Down 7% – What’s Next?

Shares of Semtech Corporation (NASDAQ:SMTC) traded down 7% during mid-day trading on Monday . The stock traded as low as $118.78 and last traded at $117.1260. Approximately 324,640 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 2,692,834 shares. The stock had previously closed at $125.92.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SMTC. Needham & Company LLC reiterated a “buy” rating and set a $200.00 price target on shares of Semtech in a report on Monday, July 13th. Robert W. Baird raised their target price on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research report on Wednesday, May 27th. UBS Group lifted their target price on Semtech from $165.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Craig Hallum boosted their price target on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Semtech in a research report on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average price target of $189.07.

Semtech Trading Down 5.2%

The firm has a fifty day simple moving average of $149.03 and a two-hundred day simple moving average of $110.78. The firm has a market capitalization of $11.12 billion, a P/E ratio of -306.21 and a beta of 2.31. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The firm had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same period in the previous year, the company posted $0.38 earnings per share. The business’s revenue was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities research analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Jason Elliot Green sold 2,264 shares of the business’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. The trade was a 20.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul V. Walsh, Jr. sold 500 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $164.99, for a total transaction of $82,495.00. Following the sale, the director directly owned 28,100 shares in the company, valued at approximately $4,636,219. This trade represents a 1.75% 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 have sold a total of 22,234 shares of company stock worth $3,203,091 in the last quarter. 0.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of SMTC. FNY Investment Advisers LLC raised its stake 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 purchasing an additional 180 shares during the period. Allied Private Wealth LLC purchased a new position in Semtech in the 2nd quarter worth $65,000. Banque Cantonale Vaudoise purchased a new position in shares of Semtech in the first quarter worth about $33,000. IFP Advisors Inc bought a new stake in shares of Semtech in the 4th quarter valued at about $53,000. Finally, Sound Income Strategies LLC bought a new stake in shares of Semtech in the 4th quarter valued at about $60,000.

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.