Semtech (NASDAQ:SMTC) Reaches New 52-Week High – Should You Buy?

Shares of Semtech Corporation (NASDAQ:SMTC) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $83.00 and last traded at $82.3010, with a volume of 1542 shares changing hands. The stock had previously closed at $80.17.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. TD Cowen assumed coverage on shares of Semtech in a research note on Wednesday, October 1st. They set a “buy” rating and a $75.00 target price on the stock. UBS Group reissued a “buy” rating on shares of Semtech in a research report on Tuesday, November 25th. Wall Street Zen upgraded shares of Semtech from a “buy” rating to a “strong-buy” rating in a report on Sunday. Needham & Company LLC reiterated a “buy” rating and set a $80.00 target price on shares of Semtech in a research note on Tuesday, November 25th. Finally, Morgan Stanley set a $67.00 target price on Semtech in a report on Tuesday, November 25th. Fourteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $79.21.

Semtech Price Performance

The stock has a market capitalization of $7.48 billion, a price-to-earnings ratio of 260.76 and a beta of 2.01. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.87. The company’s 50 day moving average is $73.73 and its 200 day moving average is $64.59.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Monday, November 24th. The semiconductor company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.03. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The company had revenue of $266.97 million during the quarter, compared to the consensus estimate of $266.36 million. During the same quarter in the prior year, the firm posted $0.26 earnings per share. Semtech’s revenue for the quarter was up 12.8% on a year-over-year basis. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. Research analysts anticipate that Semtech Corporation will post -0.02 EPS for the current fiscal year.

Insider Activity

In other news, Director Paul V. Walsh, Jr. sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $71.61, for a total transaction of $35,805.00. Following the transaction, the director directly owned 25,779 shares in the company, valued at approximately $1,846,034.19. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Mark Lin sold 1,333 shares of Semtech stock in a transaction on Monday, January 5th. The shares were sold at an average price of $76.20, for a total transaction of $101,574.60. Following the completion of the transaction, the chief financial officer directly owned 18,477 shares in the company, valued at $1,407,947.40. The trade was a 6.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,467 shares of company stock worth $861,983 over the last ninety days. 0.48% of the stock is owned by corporate insiders.

Institutional Trading of Semtech

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Ameriprise Financial Inc. raised its stake in shares of Semtech by 3.7% during the third quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company’s stock worth $526,861,000 after purchasing an additional 261,647 shares during the last quarter. Capital Research Global Investors lifted its position in Semtech by 13.9% in the third quarter. Capital Research Global Investors now owns 4,691,676 shares of the semiconductor company’s stock valued at $335,220,000 after purchasing an additional 571,372 shares during the period. State Street Corp boosted its holdings in Semtech by 1.5% in the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock valued at $182,235,000 after purchasing an additional 60,788 shares in the last quarter. Alliancebernstein L.P. increased its position in Semtech by 8.7% during the 3rd quarter. Alliancebernstein L.P. now owns 3,607,697 shares of the semiconductor company’s stock worth $257,770,000 after purchasing an additional 289,313 shares during the period. Finally, Westfield Capital Management Co. LP lifted its holdings in shares of Semtech by 23.0% in the 3rd quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company’s stock valued at $241,528,000 after buying an additional 633,113 shares during the period.

Semtech Company Profile

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.