BlackRock Inc. Invests $1.58 Billion in Semtech Corporation $SMTC

Key Points

• BlackRock acquired 9.75 million Semtech shares during the second quarter, worth approximately $1.58 billion, giving it a 10.47% stake in the semiconductor company.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $189.47; recent targets range from $200 to $225.
• Semtech exceeded quarterly expectations, reporting $0.51 in EPS versus the $0.45 consensus and revenue of $291.02 million, up 15.9% year over year. The stock opened at $124.88, below its 52-week high of $177.35.

BlackRock Inc. acquired a new stake in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 9,749,439 shares of the semiconductor company's stock, valued at approximately $1,577,947,000. BlackRock Inc. owned about 10.47% of Semtech at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. FNY Investment Advisers LLC grew its stake in 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 purchasing an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Semtech during the second quarter worth $32,000. Banque Cantonale Vaudoise purchased a new stake in Semtech in the first quarter valued at $33,000. IFP Advisors Inc acquired a new stake in Semtech during the 4th quarter worth about $53,000. Finally, Smartleaf Asset Management LLC raised its stake in shares of Semtech by 24.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company's stock valued at $57,000 after buying an additional 247 shares during the last quarter.

Analysts Set New Price Targets

SMTC has been the subject of several recent research reports. Oppenheimer set a $200.00 price target on Semtech in a research report on Wednesday, May 27th. Northland Securities cut shares of Semtech from an "outperform" rating to a "market perform" rating in a research note on Tuesday, May 26th. Robert W. Baird boosted their target price on shares of Semtech from $110.00 to $225.00 and gave the company an "outperform" rating in a research note on Wednesday, May 27th. B. Riley Financial raised their price target on shares of Semtech from $165.00 to $210.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $200.00 price objective on shares of Semtech in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $189.47.

Semtech Trading Down 0.4%

Shares of SMTC stock opened at $124.88 on Friday. The firm has a market capitalization of $11.63 billion, a P/E ratio of -320.21 and a beta of 2.35. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37. Semtech Corporation has a fifty-two week low of $47.50 and a fifty-two week high of $177.35. The stock's fifty day moving average is $138.72 and its two-hundred day moving average is $117.40.

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

Insider Buying and Selling at Semtech

In other news, COO Asaf Silberstein sold 8,500 shares of the business's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the transaction, the chief operating officer directly owned 96,862 shares of the company's stock, valued at approximately $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the firm's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the sale, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% 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. Over the last 90 days, insiders sold 21,734 shares of company stock valued at $3,133,986. Corporate insiders own 0.44% of the company's stock.

About Semtech

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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