Semtech (NASDAQ:SMTC) Shares Gap Down – Time to Sell?

Semtech Corporation (NASDAQ:SMTC) gapped down prior to trading on Thursday. The stock had previously closed at $141.63, but opened at $132.33. Semtech shares last traded at $127.1130, with a volume of 556,747 shares traded.

Analysts Set New Price Targets

SMTC has been the subject of a number of research analyst reports. BMO Capital Markets upped their price objective on shares of Semtech from $155.00 to $230.00 and gave the company an “outperform” rating in a research report on Tuesday, October 13th. Stifel Nicolaus decreased their target price on Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. Seaport Research Partners initiated coverage on Semtech in a research report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 target price on the stock. Morgan Stanley set a $205.00 price target on Semtech in a research note on Friday, October 16th. Finally, Wall Street Zen raised Semtech from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $213.11.

Semtech Stock Performance

The company has a market capitalization of $11.68 billion, a P/E ratio of 82.86 and a beta of 2.41. The stock has a fifty day simple moving average of $157.32 and a 200-day simple moving average of $140.96. 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 (NASDAQ:SMTC) last posted its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate 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 quarterly revenue was up 32.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Equities analysts forecast that Semtech Corporation will post 2.80 EPS for the current year.

Insider Buying and Selling at Semtech

In other Semtech news, EVP Jason Elliot Green sold 2,766 shares of Semtech stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total value of $526,508.10. Following the completion of the transaction, the executive vice president owned 7,367 shares in the company, valued at approximately $1,402,308.45. The trade was a 27.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rodolpho C. Cardenuto sold 5,321 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $165.00, for a total value of $877,965.00. The disclosure for this sale is available in the SEC filing. Insiders sold 13,737 shares of company stock worth $2,267,877 over the last 90 days. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

Several large investors have recently made changes to their positions in the business. Andar Capital Management HK Ltd acquired a new stake in shares of Semtech in the second quarter valued at $162,000,000. BlackRock Inc. acquired a new position in Semtech during the 2nd quarter worth about $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Semtech by 396.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after acquiring an additional 672,447 shares during the last quarter. Assenagon Asset Management S.A. grew its holdings in Semtech by 323.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock worth $60,051,000 after acquiring an additional 596,373 shares during the last quarter. Finally, Atreides Management LP bought a new stake in Semtech during the 2nd quarter worth about $89,214,000.

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company’s products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.