Hsbc Holdings PLC Takes $2.02 Million Position in Semtech Corporation $SMTC

Key Points

• HSBC Holdings acquired 12,665 Semtech shares during the second quarter, establishing a position worth approximately $2.02 million. Several other institutional investors also initiated or increased stakes.
• Analysts remain broadly optimistic, with 15 Buy ratings and four Holds, producing a consensus “Moderate Buy” rating and an average price target of $204.71.
• Semtech reported stronger-than-expected quarterly results, with EPS of $0.71 versus the $0.61 estimate and revenue up 32.7% year over year to $341.87 million. The stock was trading at $167.24, up 5.1%.

Hsbc Holdings PLC acquired a new stake in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 12,665 shares of the semiconductor company's stock, valued at approximately $2,018,000.

Several other hedge funds have also recently added to or reduced their stakes in the company. FNY Investment Advisers LLC lifted its position in Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock worth $32,000 after buying an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Semtech during the second quarter worth about $32,000. Banque Cantonale Vaudoise purchased a new stake in shares of Semtech during the first quarter worth $33,000. IFP Advisors Inc purchased a new position in shares of Semtech in the 4th quarter valued at about $53,000. Finally, Allworth Financial LP acquired a new position in Semtech during the 2nd quarter worth approximately $55,000.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SMTC shares. Robert W. Baird boosted their target price on shares of Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Needham & Company LLC reiterated a "buy" rating and issued a $200.00 target price on shares of Semtech in a report on Wednesday, August 26th. Northland Securities upgraded Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 target price for the company in a research note on Thursday, August 27th. Benchmark reaffirmed a "buy" rating on shares of Semtech in a research report on Thursday, August 20th. Finally, Roth Capital set a $220.00 target price on Semtech in a report on Wednesday, August 26th. Fifteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $204.71.

Insiders Place Their Bets

In related news, Director Julie Ruehl sold 1,500 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $145.00, for a total value of $217,500.00. Following the completion of the sale, the director owned 7,140 shares in the company, valued at approximately $1,035,300. This represents a 17.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the completion of the sale, the executive vice president owned 8,611 shares in the company, valued at $1,118,568.90. This represents a 20.82% 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. Insiders sold a total of 23,234 shares of company stock valued at $3,304,706 over the last three months. 0.44% of the stock is owned by insiders.

Semtech Trading Up 5.1%

Semtech stock opened at $167.24 on Friday. The stock has a market cap of $15.61 billion, a P/E ratio of 110.76 and a beta of 2.35. The company's fifty day simple moving average is $133.86 and its 200-day simple moving average is $123.36. Semtech Corporation has a 12 month low of $57.50 and a 12 month high of $177.35. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings data 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 return on equity of 21.74% and a net margin of 13.11%.The business had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period last year, the business earned $0.41 EPS. The firm's revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, sell-side analysts forecast that Semtech Corporation will post 2.64 EPS for the current fiscal year.

Semtech Company Profile

Semtech Corporation NASDAQ: SMTC is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.

The company's portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.

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