Semtech Corporation $SMTC Shares Sold by Clearline Capital LP

Key Points

• Clearline Capital LP cut its Semtech stake sharply, reducing holdings by 59.1% in the fourth quarter and selling 412,968 shares. After the sale, it owned 285,967 shares valued at about $21.1 million.
• Semtech reported stronger-than-expected quarterly results, posting earnings of $0.51 per share versus the $0.45 consensus and revenue of $291.0 million, up 15.9% year over year. The company also issued Q2 2027 EPS guidance of $0.59 to $0.63.
• Analysts remain broadly positive on SMTC, with 13 Buy ratings, 3 Hold ratings, and 1 Sell rating. The stock’s consensus rating is Moderate Buy, with an average target price of $179.73, even after some mixed target changes and one downgrade from Citigroup.

Clearline Capital LP reduced its stake in Semtech Corporation (NASDAQ:SMTC - Free Report) by 59.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 285,967 shares of the semiconductor company's stock after selling 412,968 shares during the period. Semtech makes up about 1.0% of Clearline Capital LP's investment portfolio, making the stock its 20th biggest holding. Clearline Capital LP owned approximately 0.31% of Semtech worth $21,073,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently added to or reduced their stakes in SMTC. Jones Financial Companies Lllp increased its holdings in Semtech by 12,214.3% in the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock valued at $89,000 after purchasing an additional 2,565 shares in the last quarter. Empowered Funds LLC grew its stake in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after acquiring an additional 968 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Semtech by 5.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after acquiring an additional 22,629 shares in the last quarter. Strs Ohio acquired a new stake in shares of Semtech during the first quarter valued at about $65,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Semtech during the second quarter valued at about $226,000.

Insider Activity at Semtech

In other news, Director Martin Burvill sold 2,500 shares of Semtech stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $88.98, for a total transaction of $222,450.00. Following the sale, the director owned 4,409 shares of the company's stock, valued at approximately $392,312.82. The trade was a 36.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Jason Elliot Green sold 7,500 shares of Semtech stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $81.73, for a total value of $612,975.00. Following the sale, the executive vice president directly owned 8,811 shares in the company, valued at approximately $720,123.03. This trade represents a 45.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 25,160 shares of company stock valued at $2,227,705. Company insiders own 0.48% of the company's stock.

Semtech Stock Performance

Shares of NASDAQ SMTC opened at $150.20 on Thursday. The firm's 50-day moving average price is $130.31 and its two-hundred day moving average price is $97.88. The stock has a market capitalization of $13.99 billion, a P/E ratio of -385.13 and a beta of 2.32. 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 $40.24 and a 52-week high of $177.35.

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

Analyst Upgrades and Downgrades

SMTC has been the subject of several recent analyst reports. Stifel Nicolaus raised their target price on Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Morgan Stanley raised their target price on Semtech from $155.00 to $175.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 27th. Robert W. Baird raised their target price on Semtech from $110.00 to $225.00 and gave the company an "outperform" rating in a research note on Wednesday, May 27th. Benchmark raised their target price on Semtech from $120.00 to $230.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Finally, Citigroup downgraded Semtech from a "buy" rating to a "market perform" rating in a research note on Tuesday, May 26th. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $179.73.

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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