Semtech Corporation (NASDAQ:SMTC) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Semtech, with 15 buy ratings, three holds and one sell among 19 analysts. The average 12-month price target is $204.71.
• Semtech exceeded quarterly expectations, reporting $0.71 EPS versus the $0.61 consensus and revenue of $341.87 million, up 32.7% year over year.
• The stock opened at $147.88, near its 52-week high of $177.35, while insiders sold 19,734 shares worth approximately $2.81 million over the past three months under pre-arranged trading plans.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the nineteen ratings firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, three have given a hold rating and fifteen have assigned a buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $204.7059.

A number of equities analysts have issued reports on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. Wall Street Zen raised Semtech from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Zacks Research downgraded shares of Semtech from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Northland Securities raised shares of Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 price objective on the stock in a research note on Thursday, August 27th. Finally, Oppenheimer set a $200.00 price objective on shares of Semtech in a report on Wednesday, May 27th.

Semtech Price Performance

SMTC opened at $147.88 on Friday. The company has a fifty day moving average price of $132.56 and a two-hundred day moving average price of $120.80. The firm has a market capitalization of $13.80 billion, a PE ratio of 97.93 and a beta of 2.35. Semtech has a 52 week low of $57.50 and a 52 week high of $177.35. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its quarterly earnings results 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. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The company had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same quarter in the prior year, the business posted $0.41 EPS. The firm's quarterly revenue 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, analysts anticipate that Semtech will post 2.64 earnings per share for the current year.

Insider Buying and Selling at Semtech

In other news, CEO Hong Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $133.00, for a total transaction of $266,000.00. Following the sale, the chief executive officer owned 64,799 shares of the company's stock, valued at $8,618,267. This trade represents a 2.99% decrease in their ownership of the stock. 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, CFO Mark Lin sold 970 shares of the business's stock in a transaction that occurred 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 transaction, the chief financial officer owned 34,896 shares of the company's stock, valued at $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 19,734 shares of company stock worth $2,809,786 in the last three months. 0.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SMTC. Leonteq Securities AG raised its position in Semtech by 11.2% during the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company's stock worth $90,000 after acquiring an additional 118 shares in the last quarter. Corient Private Wealth LP grew its position in shares of Semtech by 4.0% in the 2nd quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company's stock valued at $515,000 after acquiring an additional 122 shares during the period. Stephens Inc. AR increased its stake in shares of Semtech by 3.3% during the 4th quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company's stock worth $325,000 after purchasing an additional 142 shares during the last quarter. ABS Investment Management LLC bought a new stake in shares of Semtech in the 2nd quarter valued at about $178,035,000. Finally, Captrust Financial Advisors lifted its stake in Semtech by 0.8% in the 4th quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company's stock valued at $1,422,000 after purchasing an additional 162 shares during the last quarter.

Semtech Company Profile

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.

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