Semtech (NASDAQ:SMTC) Trading 8% Higher – Should You Buy?

Shares of Semtech Corporation (NASDAQ:SMTC) rose 8% on Monday . The stock traded as high as $171.33 and last traded at $170.9640. 837,056 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 2,549,990 shares. The stock had previously closed at $158.23.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SMTC. Craig Hallum lifted their target price on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. B. Riley Financial increased their price target on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Susquehanna boosted their price objective on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research report on Wednesday, May 27th. Robert W. Baird upped their price objective on shares of Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Finally, Citigroup lowered shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Thirteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $189.07.

Semtech Price Performance

The business’s 50 day moving average price is $136.53 and its two-hundred day moving average price is $100.43. The stock has a market cap of $15.18 billion, a P/E ratio of -421.55 and a beta of 2.32. 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 results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. The company had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. Semtech’s revenue was up 15.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, sell-side analysts expect that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Paul V. Walsh, Jr. sold 500 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total value of $69,105.00. Following the sale, the director directly owned 23,279 shares of the company’s stock, valued at $3,217,390.59. This represents a 2.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Martin Burvill sold 2,500 shares of the stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $88.98, for a total transaction of $222,450.00. Following the completion of the transaction, the director owned 4,409 shares of the company’s stock, valued at approximately $392,312.82. The trade was a 36.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,974 shares of company stock worth $1,538,296 over the last quarter. Company insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On Semtech

Several hedge funds have recently bought and sold shares of SMTC. Banque Cantonale Vaudoise purchased a new position in shares of Semtech during the first quarter valued at approximately $33,000. Assetmark Inc. boosted its stake in Semtech by 1,745.5% in the 3rd quarter. Assetmark Inc. now owns 609 shares of the semiconductor company’s stock worth $44,000 after purchasing an additional 576 shares in the last quarter. IFP Advisors Inc purchased a new stake in Semtech during the 4th quarter valued at about $53,000. Huntington National Bank grew its position in Semtech by 151.3% during the 3rd quarter. Huntington National Bank now owns 749 shares of the semiconductor company’s stock valued at $54,000 after purchasing an additional 451 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its stake in Semtech by 24.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock valued at $57,000 after purchasing an additional 247 shares in the last quarter.

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.