Semtech (NASDAQ:SMTC) Trading Up 7.5% – Here’s What Happened

Semtech Corporation (NASDAQ:SMTC)’s stock price shot up 7.5% during trading on Monday . The stock traded as high as $152.50 and last traded at $150.90. Approximately 446,907 shares traded hands during trading, a decline of 83% from the average daily volume of 2,637,644 shares. The stock had previously closed at $140.35.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on SMTC. Oppenheimer set a $200.00 price target on shares of Semtech in a report on Wednesday, May 27th. Citigroup downgraded shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Craig Hallum raised their target price on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Mizuho set a $225.00 target price on shares of Semtech in a research report on Wednesday, May 27th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a research note on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Semtech has a consensus rating of “Moderate Buy” and an average target price of $189.07.

Semtech Price Performance

The company has a 50 day moving average price of $140.61 and a 200 day moving average price of $115.88. The firm has a market cap of $14.39 billion, a PE ratio of -396.01 and a beta of 2.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86.

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

Insider Transactions at Semtech

In other news, Director Paul V. Walsh, Jr. sold 500 shares of the 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 transaction, the director directly owned 28,100 shares in the company, valued at $4,636,219. This represents a 1.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction of $145,897.70. Following the transaction, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This trade represents a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,234 shares of company stock worth $3,203,091 in the last three months. 0.44% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Semtech

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Atreides Management LP purchased a new stake in shares of Semtech during the 2nd quarter worth about $89,214,000. Freestone Grove Partners LP acquired a new position in shares of Semtech during the 2nd quarter valued at $14,002,000. Man Group plc acquired a new position in shares of Semtech during the second quarter worth about $15,479,000. Jupiter Topco LLC acquired a new position in shares of Semtech during the second quarter worth about $6,832,000. Finally, J. Goldman & Co LP purchased a new stake in shares of Semtech in the second quarter worth about $1,066,000.

About Semtech

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.