Semtech (NASDAQ:SMTC) Trading 9.9% Higher – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s share price rose 9.9% during trading on Monday . The company traded as high as $87.94 and last traded at $87.66. Approximately 503,301 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 1,333,412 shares. The stock had previously closed at $79.75.

Analyst Ratings Changes

Several research firms recently weighed in on SMTC. UBS Group reaffirmed a “buy” rating on shares of Semtech in a research note on Tuesday, November 25th. Oppenheimer reaffirmed an “outperform” rating and issued a $81.00 price objective on shares of Semtech in a research report on Tuesday, November 25th. Roth Mkm upped their target price on Semtech from $65.00 to $77.00 and gave the company a “buy” rating in a research note on Tuesday, November 25th. Needham & Company LLC reissued a “buy” rating and issued a $80.00 price target on shares of Semtech in a research note on Tuesday, November 25th. Finally, Robert W. Baird upped their price objective on shares of Semtech from $70.00 to $88.00 and gave the company an “outperform” rating in a research note on Tuesday, November 25th. Fourteen equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $79.21.

Semtech Trading Down 6.6%

The stock has a market capitalization of $7.58 billion, a price-to-earnings ratio of 264.13 and a beta of 2.01. The firm has a fifty day moving average of $76.83 and a 200-day moving average of $66.97. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.71 and a current ratio of 2.43.

Semtech (NASDAQ:SMTC) last posted its earnings results on Monday, November 24th. The semiconductor company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. The business had revenue of $266.97 million for the quarter, compared to analysts’ expectations of $266.36 million. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.26 earnings per share. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. As a group, equities analysts predict that Semtech Corporation will post -0.02 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other news, Director Gregory Michael Fischer sold 1,034 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $75.50, for a total transaction of $78,067.00. Following the completion of the sale, the director owned 2,857 shares of the company’s stock, valued at approximately $215,703.50. This trade represents a 26.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider John Michael Wilson sold 5,000 shares of the stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $75.12, for a total transaction of $375,600.00. Following the transaction, the insider owned 60,066 shares in the company, valued at $4,512,157.92. This trade represents a 7.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 16,967 shares of company stock valued at $1,316,108. 0.48% of the stock is currently owned by insiders.

Institutional Trading of Semtech

Several institutional investors and hedge funds have recently bought and sold shares of SMTC. Jones Financial Companies Lllp grew its stake in Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock worth $89,000 after buying an additional 2,565 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock valued at $323,000 after buying an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Semtech by 5.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock worth $14,166,000 after buying an additional 22,629 shares during the period. Strs Ohio bought a new stake in shares of Semtech during the first quarter valued at about $65,000. Finally, Janney Montgomery Scott LLC acquired a new stake in shares of Semtech in the 2nd quarter worth approximately $854,000.

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.