Semtech Corporation (NASDAQ:SMTC) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Semtech has a “Moderate Buy” consensus rating from 19 analysts: 15 recommend buying, three advise holding, and one rates it a strong buy. The average 12-month price target is $204.71, with targets ranging from $155 to $300.
• Semtech’s latest quarterly results exceeded expectations, with adjusted EPS of $0.71 versus the $0.61 consensus and revenue of $341.87 million versus $328.67 million expected. Revenue increased 32.7% year over year.
• The stock opened at $180.10, near its 52-week high of $190.64, after substantial gains above its 50-day and 200-day moving averages. Insiders have sold 22,768 shares worth approximately $3.2 million over the past 90 days, primarily through pre-arranged trading plans.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nineteen brokerages that are presently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $204.71.

SMTC has been the subject of a number of research reports. BMO Capital Markets started coverage on Semtech in a research note on Wednesday, August 26th. They issued an "outperform" rating and a $155.00 price target for the company. Roth Capital set a $220.00 price objective on Semtech in a research note on Wednesday, August 26th. Robert W. Baird increased their target price on Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. TD Cowen lifted their target price on Semtech from $210.00 to $215.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $200.00 price target on shares of Semtech in a report on Wednesday, August 26th.

Insider Buying and Selling at Semtech

In other Semtech news, COO Asaf Silberstein sold 8,500 shares of the firm's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the sale, the chief operating officer directly owned 96,862 shares in the company, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the transaction, the director directly owned 7,140 shares of the company's stock, valued at approximately $1,035,300. This trade represents a 17.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 22,768 shares of company stock worth $3,214,795. 0.44% of the stock is owned by company insiders.

Institutional Trading of Semtech

A number of large investors have recently modified their holdings of SMTC. ABS Investment Management LLC acquired a new position in Semtech during the 2nd quarter valued at about $178,035,000. FNY Investment Advisers LLC increased its stake in shares of Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Semtech during the second quarter valued at approximately $32,000. Allworth Financial LP bought a new stake in shares of Semtech during the second quarter valued at approximately $55,000. Finally, Allied Private Wealth LLC acquired a new position in shares of Semtech during the second quarter worth approximately $65,000.

Semtech Stock Performance

Semtech stock opened at $180.10 on Wednesday. The stock has a market cap of $16.81 billion, a P/E ratio of 119.27 and a beta of 2.35. 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 50 day moving average of $143.23 and a 200-day moving average of $130.62. Semtech has a 52 week low of $60.28 and a 52 week high of $190.64.

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

About Semtech

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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