Semtech (NASDAQ:SMTC) CEO Hong Hou Sells 2,000 Shares of Stock

Semtech Corporation (NASDAQ:SMTC) CEO Hong Hou sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $138.71, for a total value of $277,420.00. Following the completion of the sale, the chief executive officer owned 60,799 shares in the company, valued at $8,433,429.29. The trade was a 3.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Semtech Price Performance

Shares of SMTC opened at $163.94 on Thursday. 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 Corporation has a twelve month low of $57.50 and a twelve month high of $177.35. The stock has a market capitalization of $15.30 billion, a P/E ratio of 108.57 and a beta of 2.35. The company has a 50 day moving average of $132.74 and a 200-day moving average of $122.55.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm’s revenue for the quarter was up 32.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, equities research analysts forecast that Semtech Corporation will post 2.64 EPS for the current fiscal year.

Institutional Investors Weigh In On Semtech

Hedge funds have recently bought and sold shares of the company. FNY Investment Advisers LLC grew its holdings in 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 during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Semtech during the second quarter worth approximately $32,000. Banque Cantonale Vaudoise bought a new stake in Semtech in the first quarter valued at approximately $33,000. IFP Advisors Inc bought a new stake in Semtech in the fourth quarter valued at approximately $53,000. Finally, Allworth Financial LP acquired a new stake in shares of Semtech in the second quarter valued at approximately $55,000.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on SMTC shares. Wall Street Zen raised Semtech from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. BMO Capital Markets began coverage on Semtech in a research report on Wednesday, August 26th. They set an “outperform” rating and a $155.00 price target for the company. Robert W. Baird raised their price target on Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. Citigroup lowered Semtech from a “buy” rating to a “market perform” rating in a research report on Tuesday, May 26th. Finally, B. Riley Financial upped their price objective on Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Fifteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $204.71.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported quarterly EPS of $0.71, ahead of the $0.61 consensus estimate, while revenue of $341.87 million exceeded expectations of $328.67 million. Revenue increased 32.7% year over year, and the company provided EPS guidance of $1.02 to $1.08 for the next quarter. These results reinforce the market’s view that growth is accelerating. Semtech rallies 10% after earnings and guidance beat
• Positive Sentiment: The company introduced a 224G linear transimpedance amplifier and driver portfolio for near-packaged optics and co-packaged optics. The products target AI and machine-learning clusters, hyperscale data centers and next-generation optical connectivity, providing exposure to expanding data-center bandwidth demand. Semtech Sets Bar for 224G Optical Connectivity
• Positive Sentiment: Semtech also announced an industry-first 10G PON chipset for 50G optical line-terminal modules. The chipset is designed to support multiple generations of PON technology, potentially helping network-equipment customers transition to higher-speed broadband deployments. Semtech Delivers 10G PON Chipset
• Neutral Sentiment: CEO Hong Hou sold 2,000 shares and director Julie Garcia Ruehl sold 1,500 shares. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as a bearish signal, although they still represent near-term insider selling.
• Negative Sentiment: Semtech’s sharp advance has left the stock trading at a high valuation, with a price-to-earnings ratio above 100. One valuation analysis estimated fair value substantially below the market price, raising downside risk if growth or guidance weakens. Semtech valuation analysis

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.