Semtech (NASDAQ:SMTC) Shares Gap Up on Earnings Beat

Semtech Co. (NASDAQ:SMTC) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $32.71, but opened at $37.26. Semtech shares last traded at $37.51, with a volume of 2,130,062 shares.

The semiconductor company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.08. The firm had revenue of $251.00 million during the quarter, compared to analyst estimates of $249.40 million. The firm’s revenue for the quarter was up 30.1% compared to the same quarter last year. During the same period last year, the company earned ($0.06) earnings per share.

Wall Street Analyst Weigh In

SMTC has been the subject of several research reports. Northland Securities upped their price target on shares of Semtech from $60.00 to $66.00 and gave the company an “outperform” rating in a research report on Tuesday, December 10th. Susquehanna lifted their price objective on shares of Semtech from $55.00 to $60.00 and gave the company a “positive” rating in a research note on Thursday, November 21st. Roth Mkm increased their target price on shares of Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Robert W. Baird dropped their price target on Semtech from $80.00 to $60.00 and set an “outperform” rating on the stock in a research report on Friday, February 7th. Finally, Stifel Nicolaus reduced their price objective on Semtech from $60.00 to $54.00 and set a “buy” rating for the company in a research note on Friday. Three equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $63.82.

Insider Buying and Selling

In other news, SVP Imran Sherazi sold 2,946 shares of the business’s stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $63.30, for a total value of $186,481.80. Following the completion of the transaction, the senior vice president now owns 6,317 shares of the company’s stock, valued at $399,866.10. The trade was a 31.80 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Mark Lin sold 10,890 shares of the business’s stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $34.68, for a total value of $377,665.20. Following the completion of the transaction, the chief financial officer now owns 11,625 shares of the company’s stock, valued at $403,155. This trade represents a 48.37 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 27,637 shares of company stock worth $1,472,726 in the last three months. Corporate insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Semtech

A number of hedge funds and other institutional investors have recently made changes to their positions in SMTC. Vanguard Group Inc. lifted its position in Semtech by 13.0% during the fourth quarter. Vanguard Group Inc. now owns 11,542,545 shares of the semiconductor company’s stock worth $713,906,000 after buying an additional 1,326,226 shares during the period. Hood River Capital Management LLC lifted its holdings in shares of Semtech by 1.8% during the 4th quarter. Hood River Capital Management LLC now owns 3,450,042 shares of the semiconductor company’s stock worth $213,385,000 after acquiring an additional 59,743 shares during the period. Whale Rock Capital Management LLC boosted its position in shares of Semtech by 364.2% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,266,202 shares of the semiconductor company’s stock worth $202,015,000 after acquiring an additional 2,562,602 shares during the last quarter. Disciplined Growth Investors Inc. MN grew its holdings in Semtech by 4.6% in the third quarter. Disciplined Growth Investors Inc. MN now owns 2,609,984 shares of the semiconductor company’s stock valued at $119,172,000 after purchasing an additional 114,999 shares during the period. Finally, Wellington Management Group LLP increased its position in Semtech by 827.0% during the fourth quarter. Wellington Management Group LLP now owns 2,143,081 shares of the semiconductor company’s stock worth $132,550,000 after purchasing an additional 1,911,890 shares during the last quarter.

Semtech Stock Up 15.0 %

The company has a market cap of $2.85 billion, a PE ratio of -2.88, a P/E/G ratio of 2.12 and a beta of 1.69. The stock’s 50 day simple moving average is $52.84 and its two-hundred day simple moving average is $51.25.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.