Semtech (NASDAQ:SMTC) Upgraded to “Strong-Buy” at Zacks Research

Semtech (NASDAQ:SMTC) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Monday,Zacks.com reports.

Several other brokerages have also recently weighed in on SMTC. B. Riley Financial boosted their price objective on Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Benchmark lifted their price target on shares of Semtech from $120.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Roth Mkm upped their price objective on Semtech from $102.00 to $190.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. UBS Group lifted their target price on Semtech from $165.00 to $225.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Finally, Needham & Company LLC raised their price target on shares of Semtech from $105.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Semtech has a consensus rating of “Moderate Buy” and a consensus price target of $189.07.

Semtech Trading Up 3.7%

NASDAQ:SMTC opened at $161.85 on Monday. The firm has a market capitalization of $15.08 billion, a price-to-earnings ratio of -415.00 and a beta of 2.32. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. The business has a fifty day moving average price of $142.59 and a 200-day moving average price of $103.18. Semtech has a one year low of $42.38 and a one year high of $177.35.

Semtech (NASDAQ:SMTC) last posted its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.06. The company had revenue of $291.02 million during the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. Semtech’s quarterly revenue was up 15.9% on a year-over-year basis. During the same period last year, the company posted $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Sell-side analysts forecast that Semtech will post 1.81 EPS for the current year.

Insider Activity

In other Semtech news, Director Martin Burvill sold 2,500 shares of the stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $88.98, for a total transaction of $222,450.00. Following the completion of the sale, the director directly owned 4,409 shares of the company’s stock, valued at approximately $392,312.82. This represents a 36.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Paul V. Walsh, Jr. sold 500 shares of Semtech stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total transaction of $82,495.00. Following the completion of the transaction, the director directly owned 28,100 shares in the company, valued at approximately $4,636,219. The trade was a 1.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 13,500 shares of company stock valued at $1,866,435. Company insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SMTC. Think Investments LP purchased a new stake in Semtech in the third quarter valued at about $58,618,000. Ameriprise Financial Inc. grew its stake in shares of Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after acquiring an additional 666,456 shares during the last quarter. Atreides Management LP purchased a new stake in shares of Semtech during the second quarter worth about $29,880,000. Assenagon Asset Management S.A. increased its holdings in shares of Semtech by 323.0% during the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after acquiring an additional 596,373 shares in the last quarter. Finally, Schroder Investment Management Group raised its position in shares of Semtech by 199.3% in the 3rd quarter. Schroder Investment Management Group now owns 879,880 shares of the semiconductor company’s stock valued at $62,867,000 after purchasing an additional 585,852 shares during the last quarter.

About Semtech

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.