Charles Schwab Investment Management Inc. Cuts Stock Position in Semtech Corporation $SMTC

Key Points

• Charles Schwab Investment Management Inc. has reduced its stake in Semtech Corporation ($SMTC) by 6.2%, selling 65,448 shares and now holding 996,423 shares valued at approximately $34.28 million.
• Several other institutional investors have adjusted their positions in Semtech, with notable increases from Envestnet Asset Management (up 65%) and Marshall Wace (up 73.1%).
• Semtech recently reported earnings of $0.31 per share for the quarter, surpassing analysts' expectations, and has a consensus price target of $59.58 from multiple brokerages.

Charles Schwab Investment Management Inc. lessened its holdings in Semtech Corporation (NASDAQ:SMTC - Free Report) by 6.2% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 996,423 shares of the semiconductor company's stock after selling 65,448 shares during the period. Charles Schwab Investment Management Inc. owned approximately 1.15% of Semtech worth $34,277,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Principal Financial Group Inc. boosted its holdings in Semtech by 4.2% in the first quarter. Principal Financial Group Inc. now owns 427,958 shares of the semiconductor company's stock valued at $14,722,000 after purchasing an additional 17,345 shares during the period. Boothbay Fund Management LLC boosted its stake in shares of Semtech by 48.9% in the 4th quarter. Boothbay Fund Management LLC now owns 40,663 shares of the semiconductor company's stock valued at $2,515,000 after buying an additional 13,348 shares during the period. KBC Group NV boosted its stake in shares of Semtech by 16.8% in the 1st quarter. KBC Group NV now owns 4,084 shares of the semiconductor company's stock valued at $140,000 after buying an additional 586 shares during the period. Fortress Investment Group LLC purchased a new position in shares of Semtech in the 4th quarter valued at about $1,225,000. Finally, Moody Aldrich Partners LLC lifted its stake in Semtech by 75.6% in the first quarter. Moody Aldrich Partners LLC now owns 98,904 shares of the semiconductor company's stock worth $3,402,000 after acquiring an additional 42,587 shares during the last quarter.

Insider Activity at Semtech

In related news, COO Asaf Silberstein sold 2,000 shares of the company's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $42.98, for a total value of $85,960.00. Following the completion of the sale, the chief operating officer owned 105,996 shares in the company, valued at $4,555,708.08. This represents a 1.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Lin sold 999 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $43.84, for a total transaction of $43,796.16. Following the completion of the sale, the chief financial officer owned 17,211 shares of the company's stock, valued at approximately $754,530.24. This trade represents a 5.49% decrease in their position. The disclosure for this sale can be found here. 0.48% of the stock is currently owned by corporate insiders.

Semtech Stock Performance

Shares of Semtech stock traded up $1.70 on Friday, hitting $51.09. The stock had a trading volume of 2,427,206 shares, compared to its average volume of 1,602,614. Semtech Corporation has a 52-week low of $24.05 and a 52-week high of $79.52. The company has a current ratio of 2.53, a quick ratio of 1.81 and a debt-to-equity ratio of 0.95. The stock has a market cap of $4.43 billion, a price-to-earnings ratio of -24.80 and a beta of 1.94. The company's 50 day moving average price is $48.26 and its 200 day moving average price is $40.13.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its earnings results on Tuesday, May 27th. The semiconductor company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.10. Semtech had a positive return on equity of 19.66% and a negative net margin of 12.52%.The business had revenue of $251.10 million during the quarter, compared to the consensus estimate of $249.79 million. During the same period in the previous year, the business earned $0.06 EPS. The business's quarterly revenue was up 21.8% on a year-over-year basis. Semtech has set its Q2 2026 guidance at 0.370-0.43 EPS. On average, research analysts anticipate that Semtech Corporation will post -0.02 EPS for the current year.

Analysts Set New Price Targets

A number of research analysts recently issued reports on SMTC shares. Benchmark reiterated a "buy" rating and issued a $68.00 price target on shares of Semtech in a research note on Wednesday, May 28th. UBS Group decreased their price objective on shares of Semtech from $60.00 to $55.00 and set a "buy" rating for the company in a research report on Monday, May 5th. Needham & Company LLC reaffirmed a "buy" rating and set a $54.00 price objective on shares of Semtech in a research report on Wednesday, May 28th. Morgan Stanley set a $43.00 price objective on shares of Semtech in a research report on Wednesday, May 28th. Finally, Stifel Nicolaus lifted their price target on Semtech from $45.00 to $54.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $59.58.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.