Semtech (NASDAQ:SMTC) Shares Gap Down – Time to Sell?

Shares of Semtech Corporation (NASDAQ:SMTC) gapped down before the market opened on Thursday. The stock had previously closed at $141.63, but opened at $132.33. Semtech shares last traded at $127.1130, with a volume of 556,747 shares.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on SMTC. New Street Research set a $230.00 price target on shares of Semtech in a research note on Thursday, August 20th. Seaport Research Partners started coverage on shares of Semtech in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $200.00 price objective for the company. TD Cowen restated a “buy” rating and issued a $215.00 price objective on shares of Semtech in a research report on Friday, October 16th. UBS Group upped their price objective on Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a report on Wednesday, August 26th. Finally, Stifel Nicolaus decreased their price objective on Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Semtech presently has a consensus rating of “Moderate Buy” and a consensus price target of $213.11.

Semtech Stock Performance

The stock’s 50 day moving average is $157.32 and its two-hundred day moving average is $140.96. The firm has a market capitalization of $11.68 billion, a P/E ratio of 82.86 and a beta of 2.41. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. During the same period last year, the firm earned $0.41 earnings per share. The business’s revenue for the quarter 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, equities analysts anticipate that Semtech Corporation will post 2.80 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other news, CEO Hong Hou sold 2,000 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $138.71, for a total value of $277,420.00. Following the transaction, the chief executive officer owned 60,799 shares of the company’s stock, valued at $8,433,429.29. This represents a 3.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Walsh, Jr. sold 500 shares of the stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total value of $86,305.00. Following the completion of the transaction, the director directly owned 26,600 shares in the company, valued at approximately $4,591,426. This trade represents a 1.85% 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. In the last ninety days, insiders have sold 13,737 shares of company stock worth $2,267,877. 0.44% of the stock is owned by company insiders.

Institutional Investors Weigh In On Semtech

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in Semtech in the second quarter valued at about $1,577,947,000. ABS Investment Management LLC bought a new position in Semtech during the second quarter worth about $178,035,000. Andar Capital Management HK Ltd bought a new position in Semtech during the second quarter worth about $162,000,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Semtech by 396.3% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after buying an additional 672,447 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its position in shares of Semtech by 56.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 546,422 shares of the semiconductor company’s stock worth $97,454,000 after buying an additional 196,734 shares during the period.

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.