Tairen Capital Ltd Acquires Shares of 37,100 Semtech Corporation $SMTC

Key Points

• Tairen Capital initiated a Semtech position by purchasing 37,100 shares worth approximately $6.0 million, while several other institutional investors also increased or opened stakes.
• Wall Street sentiment is broadly positive: analysts maintain a consensus “Moderate Buy” rating with an average price target of $189.47, though company insiders have sold 21,734 shares worth roughly $3.1 million over the past 90 days.
• Semtech’s latest quarterly results exceeded expectations, with EPS of $0.51 versus the $0.45 estimate and revenue up 15.9% year over year to $291.02 million.

Tairen Capital Ltd bought a new position in Semtech Corporation (NASDAQ:SMTC - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 37,100 shares of the semiconductor company's stock, valued at approximately $6,005,000. Semtech comprises approximately 0.5% of Tairen Capital Ltd's holdings, making the stock its 29th largest holding.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Andar Capital Management HK Ltd purchased a new stake in shares of Semtech during the second quarter valued at approximately $162,000,000. BlackRock Inc. purchased a new position in Semtech in the 2nd quarter worth approximately $1,577,947,000. Think Investments LP bought a new position in Semtech in the 3rd quarter valued at approximately $58,618,000. Ameriprise Financial Inc. lifted its position in Semtech by 10.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock valued at $321,040,000 after acquiring an additional 666,456 shares in the last quarter. Finally, Atreides Management LP purchased a new stake in Semtech during the 2nd quarter valued at $29,880,000.

Insider Buying and Selling

In other news, COO Asaf Silberstein sold 8,500 shares of the company's 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 represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the transaction, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This trade represents a 2.99% decrease in their position. 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 21,734 shares of company stock valued at $3,133,986 in the last 90 days. Insiders own 0.44% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. TD Cowen boosted their price target on Semtech from $210.00 to $215.00 and gave the stock a "buy" rating in a research note on Monday, June 22nd. UBS Group increased their price objective on Semtech from $165.00 to $225.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. New Street Research set a $230.00 price objective on Semtech in a report on Thursday. Zacks Research raised Semtech from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 29th. Finally, BMO Capital Markets initiated coverage on shares of Semtech in a research note on Thursday. They set an "outperform" rating and a $155.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $189.47.

Semtech Price Performance

Shares of SMTC opened at $124.09 on Monday. The firm has a fifty day simple moving average of $137.87 and a two-hundred day simple moving average of $117.66. The firm has a market cap of $11.56 billion, a PE ratio of -318.18 and a beta of 2.35. 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 Corporation has a 1-year low of $49.04 and a 1-year 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 (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The firm had revenue of $291.02 million for the quarter, compared to the consensus estimate of $283.53 million. During the same period last year, the business posted $0.38 EPS. The company's revenue for the quarter was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities analysts anticipate that Semtech Corporation will post 1.81 EPS for the current year.

Semtech Company 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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