Semtech (NASDAQ:SMTC) Stock Bumped Down to "Market Perform" by Northland Securities

Key Points

• Northland Securities downgraded Semtech from “outperform” to “market perform,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $208.06.
• Semtech shares fell 3.2% to open at $187.49, near their 12-month high of $201.99. The company recently exceeded quarterly expectations, reporting $0.71 in EPS and $341.87 million in revenue, up 32.7% year over year.
• Company insiders sold 10,971 shares worth approximately $1.74 million over the past three months, while several institutional investors increased or initiated positions in Semtech.

Semtech (NASDAQ:SMTC - Get Free Report) was downgraded by investment analysts at Northland Securities from an "outperform" rating to a "market perform" rating in a research report issued on Friday, Marketbeat reports.

A number of other research firms also recently weighed in on SMTC. Benchmark reissued a "buy" rating on shares of Semtech in a research report on Thursday, August 20th. Zacks Research upgraded Semtech from a "hold" rating to a "strong-buy" rating in a report on Monday, September 21st. Stifel Nicolaus boosted their price target on Semtech from $188.00 to $220.00 and gave the company a "buy" rating in a report on Monday. BMO Capital Markets initiated coverage on Semtech in a report on Wednesday, August 26th. They set an "outperform" rating and a $155.00 target price on the stock. Finally, Weiss Ratings lowered shares of Semtech from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $208.06.

Semtech Trading Down 3.2%

Shares of SMTC stock opened at $187.49 on Friday. Semtech has a 12 month low of $60.28 and a 12 month high of $201.99. The business's 50 day moving average is $152.80 and its two-hundred day moving average is $136.04. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The company has a market cap of $17.50 billion, a PE ratio of 124.17 and a beta of 2.41.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping 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 analyst estimates of $328.67 million. During the same period in the previous year, the firm posted $0.41 EPS. The company's revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Equities analysts predict that Semtech will post 2.64 EPS for the current year.

Insiders Place Their Bets

In other news, Director Paul Walsh, Jr. sold 500 shares of the company's stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total transaction of $86,305.00. Following the completion of the sale, the director owned 26,600 shares of the company's stock, valued at $4,591,426. This represents a 1.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the completion of the transaction, the chief executive officer owned 60,799 shares in the company, valued at $8,433,429.29. This trade represents a 3.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 10,971 shares of company stock valued at $1,741,369. 0.44% of the stock is currently 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 company. GAMMA Investing LLC raised its holdings in Semtech by 23.3% during the third quarter. GAMMA Investing LLC now owns 6,045 shares of the semiconductor company's stock valued at $1,078,000 after acquiring an additional 1,142 shares during the period. Farther Finance Advisors LLC increased its stake in Semtech by 116.6% during the third quarter. Farther Finance Advisors LLC now owns 4,066 shares of the semiconductor company's stock worth $725,000 after acquiring an additional 2,189 shares during the last quarter. Toth Financial Advisory Corp purchased a new position in shares of Semtech during the 3rd quarter worth about $624,000. Whalen Wealth Management Inc. purchased a new stake in Semtech in the third quarter worth $253,000. Finally, Cim Investment Management Inc. purchased a new position in Semtech during the 2nd quarter worth $319,000.

Semtech Company Profile

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company's portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.

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