Semtech (NASDAQ:SMTC) Shares Gap Up – Time to Buy?

Semtech Corporation (NASDAQ:SMTC)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $124.88, but opened at $131.05. Semtech shares last traded at $124.56, with a volume of 398,596 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SMTC. BMO Capital Markets began coverage on Semtech in a report on Thursday. They issued an “outperform” rating and a $155.00 target price for the company. TD Cowen upped their price objective on shares of Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Stifel Nicolaus lifted their target price on shares of Semtech from $157.00 to $188.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. UBS Group boosted their target price on shares of Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. Finally, Needham & Company LLC restated a “buy” rating and set a $200.00 price target on shares of Semtech in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $189.47.

Semtech Stock Down 0.8%

The stock has a market capitalization of $11.53 billion, a price-to-earnings ratio of -317.49 and a beta of 2.35. The business has a 50-day moving average of $138.72 and a 200-day moving average of $117.40. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37.

Semtech (NASDAQ:SMTC) last posted its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.06. The company had revenue of $291.02 million for the quarter, compared to analysts’ expectations 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 for the quarter was up 15.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.38 earnings per share. 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 Semtech news, Director Paul V. Walsh, Jr. sold 500 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total value of $82,495.00. Following the sale, the director owned 28,100 shares of the company’s stock, valued at $4,636,219. The trade was a 1.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the company’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $133.00, for a total transaction of $266,000.00. Following the sale, the chief executive officer directly owned 64,799 shares in the company, valued at approximately $8,618,267. The trade was a 2.99% 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 21,734 shares of company stock worth $3,133,986 in the last three months. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

A number of large investors have recently made changes to their positions in the company. FNY Investment Advisers LLC grew its holdings in Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Semtech in the 2nd quarter valued at approximately $32,000. Banque Cantonale Vaudoise acquired a new stake in shares of Semtech in the 1st quarter valued at $33,000. IFP Advisors Inc purchased a new stake in shares of Semtech during the 4th quarter worth $53,000. Finally, Allworth Financial LP purchased a new stake in shares of Semtech during the 2nd quarter worth $55,000.

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.