Semtech Corporation $SMTC Shares Sold by Atreides Management LP

Key Points

• Atreides Management cut its Semtech stake by 21.7% in the first quarter, selling 149,779 shares and retaining 541,812 shares worth approximately $41.7 million.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $189.07; several firms recently raised targets to between $200 and $225.
• Semtech beat quarterly expectations with $0.51 in earnings per share and $291.02 million in revenue, while revenue increased 15.9% year over year. However, company insiders sold 22,234 shares worth $3.2 million over the past 90 days.

Atreides Management LP lessened its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 21.7% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 541,812 shares of the semiconductor company's stock after selling 149,779 shares during the quarter. Atreides Management LP owned 0.58% of Semtech worth $41,660,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in SMTC. Banque Cantonale Vaudoise acquired a new stake in shares of Semtech during the 1st quarter worth approximately $33,000. IFP Advisors Inc purchased a new position in Semtech in the fourth quarter valued at $53,000. Sound Income Strategies LLC purchased a new position in Semtech in the fourth quarter valued at $60,000. NewEdge Advisors LLC raised its position in shares of Semtech by 1,215.4% in the third quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company's stock worth $61,000 after acquiring an additional 790 shares during the period. Finally, Hantz Financial Services Inc. raised its position in shares of Semtech by 90.0% in the fourth quarter. Hantz Financial Services Inc. now owns 965 shares of the semiconductor company's stock worth $71,000 after acquiring an additional 457 shares during the period.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on SMTC shares. Robert W. Baird upped their price target on Semtech from $110.00 to $225.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. B. Riley Financial raised their price objective on Semtech from $165.00 to $210.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Needham & Company LLC restated a "buy" rating and issued a $200.00 price objective on shares of Semtech in a research report on Monday, July 13th. UBS Group upped their target price on Semtech from $165.00 to $225.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Finally, Craig Hallum lifted their price target on shares of Semtech from $105.00 to $205.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $189.07.

Semtech Price Performance

NASDAQ:SMTC opened at $111.30 on Wednesday. The stock has a 50 day moving average of $148.34 and a two-hundred day moving average of $111.33. Semtech Corporation has a 12 month low of $46.02 and a 12 month high of $177.35. The firm has a market cap of $10.37 billion, a P/E ratio of -285.38 and a beta of 2.31. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86.

Semtech (NASDAQ:SMTC - Get Free Report) last released its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.06. The business had revenue of $291.02 million for the quarter, compared to the consensus estimate 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 quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, analysts expect that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other news, CEO Hong Q. Hou sold 2,000 shares of the company'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 of the company's stock, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the sale, the chief operating officer owned 96,862 shares of the company's stock, valued at $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 22,234 shares of company stock worth $3,203,091 over the last 90 days. 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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