Semtech (NASDAQ:SMTC) Shares Down 9.4% – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s stock price dropped 9.4% on Friday. The stock traded as low as $125.60 and last traded at $127.5660. 355,090 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 2,866,489 shares. The stock had previously closed at $140.85.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Robert W. Baird raised their price objective on Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Seaport Research Partners began coverage on shares of Semtech in a report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 target price on the stock. Roth Capital set a $220.00 target price on shares of Semtech in a research report on Wednesday, August 26th. TD Cowen reaffirmed a “buy” rating and set a $215.00 price target on shares of Semtech in a report on Friday, October 16th. Finally, Zacks Research upgraded Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. 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 company. According to MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average price target of $213.11.

Semtech Stock Down 12.6%

The company has a market capitalization of $11.49 billion, a P/E ratio of 81.60 and a beta of 2.41. The stock has a 50 day moving average price of $157.11 and a 200 day moving average price of $124.44. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million during 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%. Semtech’s revenue was up 32.7% compared to the same quarter last year. During the same period last year, the business earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Equities research analysts forecast that Semtech Corporation will post 2.80 earnings per share for the current fiscal year.

Insider Buying and Selling at Semtech

In other news, CFO Mark Lin sold 967 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $178.87, for a total value of $172,967.29. Following the sale, the chief financial officer directly owned 35,999 shares of the company’s stock, valued at $6,439,141.13. This represents a 2.62% 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, EVP Jason Elliot Green sold 2,766 shares of the company’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total transaction 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,237 shares of company stock valued at $2,337,597. Company insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Semtech

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Andar Capital Management HK Ltd purchased a new stake in shares of Semtech during the second quarter valued at about $162,000,000. BlackRock Inc. purchased a new position in Semtech during the 2nd quarter worth approximately $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings 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 acquiring an additional 672,447 shares during the last quarter. Jennison Associates LLC increased its stake in shares of Semtech by 15.6% in the first quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company’s stock worth $57,235,000 after acquiring an additional 100,552 shares during the period. Finally, Atreides Management LP purchased a new position in shares of Semtech during the second quarter worth $89,214,000.

About Semtech

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.