Andar Capital Management HK Ltd Acquires Shares of 26,219,700 Semtech Corporation $SMTC

Key Points

• Andar Capital Management HK Ltd acquired 26.2 million Semtech shares worth approximately $162 million, representing about 28.15% of the company and making Semtech its third-largest portfolio holding.
• Analyst sentiment remains broadly positive: Semtech has a consensus “Moderate Buy” rating and an average price target of $189.07, though some firms recently downgraded the stock to “market perform.”
• Semtech exceeded quarterly expectations with adjusted EPS of $0.51 and revenue of $291 million, up 15.9% year over year; however, insiders sold $3.2 million of shares over the past 90 days.

Andar Capital Management HK Ltd acquired a new position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm acquired 26,219,700 shares of the semiconductor company's stock, valued at approximately $162,000,000. Semtech accounts for about 0.4% of Andar Capital Management HK Ltd's portfolio, making the stock its 3rd biggest position. Andar Capital Management HK Ltd owned about 28.15% of Semtech as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Royce & Associates LP grew its position in Semtech by 144.5% in the 4th quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company's stock valued at $7,930,000 after buying an additional 63,603 shares during the last quarter. Argos Wealth Advisors LLC acquired a new position in Semtech in the 4th quarter valued at $640,000. Geode Capital Management LLC raised its position in Semtech by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company's stock worth $154,704,000 after buying an additional 6,715 shares during the last quarter. Strs Ohio raised its position in Semtech by 558.9% during the 4th quarter. Strs Ohio now owns 48,100 shares of the semiconductor company's stock worth $3,544,000 after buying an additional 40,800 shares during the last quarter. Finally, Swiss National Bank raised its position in Semtech by 6.9% during the 1st quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company's stock worth $14,071,000 after buying an additional 11,800 shares during the last quarter.

Analysts Set New Price Targets

SMTC has been the topic of several analyst reports. TD Cowen lifted their target price on shares of Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Zacks Research raised shares of Semtech from a "hold" rating to a "strong-buy" rating in a report on Monday, June 29th. Craig Hallum raised their price objective on shares of Semtech from $105.00 to $205.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Northland Securities lowered Semtech from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 26th. Finally, Citigroup lowered Semtech from a "buy" rating to a "market perform" rating in a report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $189.07.

Insider Activity

In other news, CFO Mark Lin sold 970 shares of Semtech stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction 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. The trade was a 2.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the transaction, the executive vice president directly owned 8,611 shares of the company's stock, valued at $1,118,568.90. This trade represents a 20.82% 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. Insiders sold a total of 22,234 shares of company stock valued at $3,203,091 in the last 90 days. Insiders own 0.44% of the company's stock.

Semtech Stock Performance

Shares of SMTC opened at $140.35 on Friday. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. Semtech Corporation has a 52-week low of $46.02 and a 52-week high of $177.35. The company has a 50-day simple moving average of $140.61 and a 200-day simple moving average of $115.63. The company has a market capitalization of $13.07 billion, a PE ratio of -359.87 and a beta of 2.35.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. The firm had revenue of $291.02 million for the quarter, compared to the consensus estimate of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm's revenue was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Equities research analysts predict that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Semtech 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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