Sterling Capital Management LLC Sells 32,625 Shares of Semtech Corporation $SMTC

Key Points

• Sterling Capital Management reduced its Semtech stake by 68.9% in the first quarter, selling 32,625 shares and leaving it with 14,716 shares valued at about $1.13 million.
• Semtech shares were up 3.7% to $161.85, near their 52-week high, as the company posted strong quarterly results with EPS of $0.51 and revenue of $291.02 million, both above expectations.
• Analysts remain broadly positive on the stock, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy with an average target price of $189.07.

Sterling Capital Management LLC trimmed its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 68.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 14,716 shares of the semiconductor company's stock after selling 32,625 shares during the quarter. Sterling Capital Management LLC's holdings in Semtech were worth $1,132,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in SMTC. Banque Cantonale Vaudoise bought a new position in Semtech in the 1st quarter valued at approximately $33,000. IFP Advisors Inc bought a new stake in Semtech during the 4th quarter worth approximately $53,000. Huntington National Bank increased its position in Semtech by 151.3% in the 3rd quarter. Huntington National Bank now owns 749 shares of the semiconductor company's stock valued at $54,000 after acquiring an additional 451 shares during the period. Smartleaf Asset Management LLC increased its position in Semtech by 24.1% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company's stock valued at $57,000 after acquiring an additional 247 shares during the period. Finally, Sound Income Strategies LLC bought a new position in shares of Semtech during the fourth quarter valued at $60,000.

Semtech Trading Up 3.7%

Shares of SMTC stock opened at $161.85 on Wednesday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37. The company has a market capitalization of $15.08 billion, a price-to-earnings ratio of -415.00 and a beta of 2.32. Semtech Corporation has a 52-week low of $42.38 and a 52-week high of $177.35. The company has a 50-day simple moving average of $142.59 and a two-hundred day simple moving average of $103.18.

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

Insiders Place Their Bets

In related news, CEO Hong Q. Hou sold 2,000 shares of the business's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $162.10, for a total value of $324,200.00. Following the transaction, the chief executive officer directly owned 69,228 shares of the company's stock, valued at approximately $11,221,858.80. The trade was a 2.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul V. Walsh, Jr. sold 500 shares of the firm's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total transaction of $82,495.00. Following the sale, the director owned 28,100 shares of the company's stock, valued at $4,636,219. This trade represents a 1.75% decrease in their position. 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 13,500 shares of company stock worth $1,866,435 in the last ninety days. Company insiders own 0.48% of the company's stock.

Wall Street Analysts Forecast Growth

SMTC has been the topic of a number of recent research reports. B. Riley Financial lifted their price target on shares of Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Stifel Nicolaus raised their target price on Semtech from $157.00 to $188.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Benchmark lifted their target price on Semtech from $120.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Needham & Company LLC upped their price target on Semtech from $105.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Finally, Oppenheimer set a $200.00 price target on Semtech in a research note on Wednesday, May 27th. Thirteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $189.07.

Semtech Profile

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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