Semtech (NASDAQ:SMTC) Trading 5.9% Higher – Still a Buy?

Semtech Corporation (NASDAQ:SMTC) was up 5.9% on Friday . The stock traded as high as $143.99 and last traded at $143.3650. Approximately 664,222 shares changed hands during trading, a decline of 76% from the average daily volume of 2,726,650 shares. The stock had previously closed at $135.40.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on SMTC shares. Wall Street Zen upgraded Semtech from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Roth Capital set a $220.00 price target on shares of Semtech in a report on Wednesday, August 26th. Northland Securities raised Semtech from a “market perform” rating to an “outperform” rating and set a $182.00 target price for the company in a research note on Thursday, August 27th. BMO Capital Markets assumed coverage on shares of Semtech in a research note on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 price target on the stock. Finally, Zacks Research cut shares of Semtech from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Fifteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Semtech currently has a consensus rating of “Moderate Buy” and a consensus price target of $204.71.

Semtech Stock Performance

The stock’s 50 day moving average is $132.59 and its 200 day moving average is $120.61. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $13.69 billion, a price-to-earnings ratio of 97.23 and a beta of 2.35.

Semtech (NASDAQ:SMTC) last issued its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The firm had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%.Semtech’s quarterly revenue was up 32.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, analysts predict that Semtech Corporation will post 2.64 earnings per share for the current year.

Insider Buying and Selling at Semtech

In other Semtech news, CFO Mark Lin sold 970 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the completion of the sale, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This represents a 2.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the company’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total value of $1,086,300.00. Following the completion of the transaction, the chief operating officer owned 96,862 shares of the company’s stock, valued at $12,378,963.60. The trade was a 8.07% 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 19,734 shares of company stock valued at $2,809,786 in the last quarter. Corporate insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

Several hedge funds have recently modified their holdings of SMTC. Andar Capital Management HK Ltd bought a new position in Semtech in the 2nd quarter worth approximately $162,000,000. California State Teachers Retirement System lifted its stake in Semtech by 16,868.8% in the second quarter. California State Teachers Retirement System now owns 17,446,944 shares of the semiconductor company’s stock valued at $2,823,788,000 after buying an additional 17,344,126 shares in the last quarter. BlackRock Inc. bought a new stake in Semtech in the 2nd quarter valued at $1,577,947,000. Think Investments LP bought a new stake in shares of Semtech in the third quarter valued at about $58,618,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Semtech by 396.3% during the 2nd 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 acquiring an additional 672,447 shares in 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.