Semtech (NASDAQ:SMTC) Stock Price Up 12.6% – Still a Buy?

Semtech Corporation (NASDAQ:SMTC)’s share price shot up 12.6% during mid-day trading on Monday. The stock traded as high as $115.43 and last traded at $116.2420. 783,155 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 2,906,853 shares. The stock had previously closed at $103.21.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. B. Riley Financial dropped their price objective on Semtech from $210.00 to $190.00 and set a “buy” rating for the company in a report on Monday. UBS Group raised their target price on shares of Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, August 26th. Wall Street Zen raised shares of Semtech from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Zacks Research upgraded shares of Semtech from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Finally, Needham & Company LLC reissued a “buy” rating and set a $200.00 price target on shares of Semtech in a research note on Wednesday, August 26th. One investment 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 company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $212.00.

Semtech Trading Down 2.5%

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The business has a 50 day moving average of $154.47 and a 200 day moving average of $125.89. The firm has a market capitalization of $10.59 billion, a price-to-earnings ratio of 75.16 and a beta of 2.50.

Semtech (NASDAQ:SMTC) last released its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The firm had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same quarter in the prior year, the firm posted $0.41 earnings per share. The company’s quarterly revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, research analysts predict that Semtech Corporation will post 2.80 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Hong Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $138.71, for a total value of $277,420.00. Following the sale, the chief executive officer directly owned 60,799 shares in the company, valued at $8,433,429.29. This trade represents a 3.18% 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, EVP Jason Elliot Green sold 2,766 shares of Semtech stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total transaction of $526,508.10. Following the transaction, the executive vice president directly owned 7,367 shares in the company, valued at $1,402,308.45. The trade was a 27.30% 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 a total of 14,237 shares of company stock worth $2,337,597 over the last quarter. Insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Semtech

Several hedge funds have recently bought and sold shares of SMTC. Andar Capital Management HK Ltd bought a new position in shares of Semtech during the second quarter worth $162,000,000. BlackRock Inc. bought a new stake in shares of Semtech in the 2nd quarter valued at $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Semtech by 396.3% in 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 valued at $136,298,000 after buying an additional 672,447 shares in the last quarter. Jennison Associates LLC raised its stake in Semtech by 15.6% during the 1st quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company’s stock worth $57,235,000 after buying an additional 100,552 shares during the period. Finally, Atreides Management LP acquired a new stake in Semtech during the 2nd quarter worth $89,214,000.

About Semtech

Semtech Corporation is a semiconductor and connectivity technology company that develops products for communications, industrial, and consumer applications. Its portfolio includes analog and mixed-signal semiconductors, signal-integrity and protection products, and power-management solutions used in electronic systems. The company is known for LoRa technology, which supports low-power, long-range wireless communications for Internet of Things (IoT) devices. Semtech also provides cellular IoT modules, routers, and related services, expanding its connectivity offerings through its acquisition of Sierra Wireless in 2023.