Semtech Corporation (NASDAQ:SMTC) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Semtech has a “Moderate Buy” consensus rating from 19 analysts: 15 recommend buying, three rate it a hold, and one gives it a strong-buy rating. The average 12-month price target is $213.11.
• Recent analyst actions have generally been positive, including BMO Capital Markets raising its target to $230 and Northland Securities upgrading the stock to “outperform.”
• Semtech reported quarterly revenue of $341.87 million, up 32.7% year over year, and earnings of $0.71 per share—beating estimates of $0.61. However, insiders sold 14,237 shares worth approximately $2.34 million over the past three months.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) have received a consensus rating of "Moderate Buy" from the nineteen analysts that are currently covering the company, Marketbeat reports. Three research analysts have rated the stock with a hold recommendation, fifteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $213.11.

A number of research analysts have commented on the company. BMO Capital Markets increased their price objective on Semtech from $155.00 to $230.00 and gave the company an "outperform" rating in a research report on Tuesday, October 13th. Zacks Research upgraded Semtech from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Northland Securities raised Semtech from a "market perform" rating to an "outperform" rating and set a $186.00 price target on the stock in a research note on Friday, October 16th. Wall Street Zen upgraded Semtech from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. Finally, Benchmark reiterated a "buy" rating on shares of Semtech in a report on Thursday, August 20th.

Insider Activity

In other news, Director Paul V. Walsh, Jr. sold 500 shares of Semtech stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $139.44, for a total transaction of $69,720.00. Following the completion of the sale, the director owned 26,100 shares in the company, valued at $3,639,384. The trade was a 1.88% decrease in their position. The sale was disclosed in a filing 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 Q. Hou sold 2,000 shares of the business's 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 sale, the chief executive officer directly owned 60,799 shares of the company's stock, valued at approximately $8,433,429.29. This trade represents a 3.18% decrease in their ownership of the stock. 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. In the last three months, insiders sold 14,237 shares of company stock worth $2,337,597. Corporate insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Semtech

Hedge funds and other institutional investors have recently bought and sold shares of the business. FNY Investment Advisers LLC raised its position in shares of Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock valued at $32,000 after acquiring an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Semtech in the 2nd quarter valued at $32,000. Banque Cantonale Vaudoise acquired a new position in shares of Semtech in the 1st quarter valued at $33,000. Pension & Wealth Management Advisors Inc. acquired a new position in shares of Semtech in the 3rd quarter valued at $53,000. Finally, Allworth Financial LP bought a new position in shares of Semtech in the 2nd quarter worth $55,000.

Semtech Price Performance

SMTC opened at $132.00 on Friday. Semtech has a one year low of $60.28 and a one year high of $201.99. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The company's 50 day simple moving average is $156.98 and its 200-day simple moving average is $141.20. The stock has a market capitalization of $12.32 billion, a P/E ratio of 87.42 and a beta of 2.41.

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 for the quarter, beating 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 business had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. During the same quarter last year, the business posted $0.41 earnings per share. Semtech'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. Sell-side analysts anticipate that Semtech will post 2.80 earnings per share for the current fiscal year.

About Semtech

Semtech Corporation NASDAQ: SMTC is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company's products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.

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