Semtech (NASDAQ:SMTC) Stock Price Down 5% – Time to Sell?

Semtech Corporation (NASDAQ:SMTC)’s share price was down 5% during mid-day trading on Wednesday . The stock traded as low as $154.00 and last traded at $153.4610. Approximately 1,061,897 shares changed hands during trading, a decline of 56% from the average daily volume of 2,415,624 shares. The stock had previously closed at $161.59.

Wall Street Analyst Weigh In

Several research analysts have issued reports on SMTC shares. Weiss Ratings lowered Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Tuesday, March 24th. Mizuho set a $225.00 price objective on Semtech in a research note on Wednesday, May 27th. TD Cowen reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, February 24th. Roth Mkm increased their price objective on Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Finally, Susquehanna increased their price objective on Semtech from $170.00 to $200.00 and gave the stock a “positive” rating in a research note on Wednesday, May 27th. Thirteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Semtech presently has a consensus rating of “Moderate Buy” and a consensus price target of $179.73.

Semtech Stock Performance

The company has a market capitalization of $14.22 billion, a price-to-earnings ratio of -392.01 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 stock has a 50 day moving average price of $128.96 and a two-hundred day moving average price of $97.34.

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

Insider Buying and Selling

In other news, CEO Hong Q. Hou sold 2,000 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $162.10, for a total value of $324,200.00. Following the completion of the sale, the chief executive officer directly owned 69,228 shares in the company, valued at approximately $11,221,858.80. This trade represents a 2.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 974 shares of the firm’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $78.42, for a total value of $76,381.08. Following the completion of the sale, the chief financial officer owned 33,343 shares of the company’s stock, valued at approximately $2,614,758.06. This trade represents a 2.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 25,160 shares of company stock valued at $2,227,705 in the last 90 days. 0.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Semtech

Hedge funds have recently added to or reduced their stakes in the company. Banque Cantonale Vaudoise bought a new position in Semtech in the first quarter valued at about $33,000. Jones Financial Companies Lllp boosted its holdings in Semtech by 65.5% in the third quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 235 shares during the last quarter. Assetmark Inc. boosted its holdings in Semtech by 1,745.5% in the third quarter. Assetmark Inc. now owns 609 shares of the semiconductor company’s stock valued at $44,000 after acquiring an additional 576 shares during the last quarter. IFP Advisors Inc bought a new position in Semtech in the fourth quarter valued at about $53,000. Finally, Huntington National Bank boosted its holdings in Semtech by 151.3% in the third quarter. Huntington National Bank now owns 749 shares of the semiconductor company’s stock valued at $54,000 after acquiring an additional 451 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.