Semtech (NASDAQ:SMTC) Director Paul Walsh, Jr. Sells 500 Shares of Stock

Semtech Corporation (NASDAQ:SMTC) Director Paul Walsh, Jr. sold 500 shares of the company’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total value of $86,305.00. Following the completion of the sale, the director directly owned 26,600 shares in the company, valued at $4,591,426. This trade represents a 1.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Semtech Trading Up 4.5%

NASDAQ:SMTC opened at $182.30 on Friday. The company has a market capitalization of $17.01 billion, a PE ratio of 120.73 and a beta of 2.35. 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 52-week low of $60.28 and a 52-week high of $190.64. The stock has a fifty day simple moving average of $141.41 and a 200-day simple moving average of $129.04.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 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 analyst estimates of $328.67 million. During the same period in the previous year, the firm earned $0.41 EPS. The business’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities research analysts expect that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Semtech

Institutional investors and hedge funds have recently modified their holdings of the company. ABS Investment Management LLC acquired a new stake in Semtech during the second quarter worth approximately $178,035,000. FNY Investment Advisers LLC raised its holdings in Semtech by 900.0% in 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 during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Semtech during the 2nd quarter worth $32,000. Allworth Financial LP purchased a new position in shares of Semtech during the 2nd quarter worth $55,000. Finally, Allied Private Wealth LLC acquired a new stake in shares of Semtech during the second quarter worth $65,000.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Buy rating from Seaport Global: Seaport Global initiated coverage of Semtech with a Buy rating, adding to the positive analyst sentiment surrounding the stock. Seaport Global initiates coverage of Semtech with buy
• Positive Sentiment: AI and semiconductor exposure: Semtech was included among four top-ranked chip stocks positioned to benefit from accelerating AI infrastructure demand. The inclusion may attract additional investor interest in SMTC as spending on advanced connectivity and data-center components expands. 4 Top-Ranked Chip Stocks to Buy for Better Returns in October
• Positive Sentiment: Expansion into higher-growth connectivity markets: Semtech introduced an industry-first 10G passive optical network chipset for triple-generation 50G optical line terminal applications. The new product broadens the company’s opportunity in fiber-optic and broadband infrastructure markets. Semtech Is Expanding Into Higher-Growth Connectivity Markets
• Positive Sentiment: Momentum following earnings: SMTC is reported to be up 20.3% since its latest earnings release. Semtech previously exceeded quarterly EPS and revenue estimates, with revenue increasing 32.7% year over year, reinforcing expectations for continued growth. Semtech Up 20.3% Since Last Earnings Report
• Neutral Sentiment: Insider transaction: Director Paul Walsh, Jr. sold 500 shares worth approximately $86,305 under a pre-arranged Rule 10b5-1 trading plan. Because the sale represented only 1.85% of his holdings and was scheduled in advance, it is a limited signal of insider sentiment. Semtech insider transaction filing
• Neutral Sentiment: Trading and ownership data: Reported short interest was zero shares, implying no measurable short-selling pressure, while Semtech was also highlighted among liquid stocks with strong growth and operational-efficiency characteristics. 4 Top-Performing Liquid Stocks to Strengthen Your Portfolio
• Negative Sentiment: Valuation risk: After roughly a sevenfold three-year advance, some commentary argues that SMTC may be overvalued. With the stock trading at a high earnings multiple, investors may demand continued strong growth, increasing the risk of volatility or profit-taking. Semtech Stock May Be Overvalued

Analysts Set New Price Targets

SMTC has been the subject of a number of recent research reports. UBS Group raised their price objective on shares of Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday, August 26th. TD Cowen upped their target price on Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Morgan Stanley increased their target price on Semtech from $175.00 to $195.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. Roth Capital set a $220.00 price target on Semtech in a research report on Wednesday, August 26th. Finally, Zacks Research raised Semtech from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $204.71.

About Semtech

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.