WCM Investment Management LLC Cuts Stake in Semtech Corporation $SMTC

Key Points

• WCM Investment Management cut its Semtech stake by 34.3% in the first quarter, selling 97,503 shares and leaving it with 186,844 shares worth about $13.2 million.
• Semtech reported strong quarterly results, with EPS of $0.51 beating estimates and revenue of $291.0 million, up 15.9% year over year. The company also guided Q2 2027 EPS to $0.59-$0.63.
• Analyst sentiment remains mostly positive despite some mixed calls: several firms raised price targets to as high as $230, and the stock currently carries a Moderate Buy consensus with an average target of $189.07.

WCM Investment Management LLC lowered its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 34.3% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 186,844 shares of the semiconductor company's stock after selling 97,503 shares during the quarter. WCM Investment Management LLC owned approximately 0.20% of Semtech worth $13,193,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Jones Financial Companies Lllp boosted its holdings in shares of Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after purchasing an additional 2,565 shares during the last quarter. Empowered Funds LLC raised its position in Semtech by 11.5% in the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after purchasing an additional 968 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Semtech by 5.8% in 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 buying an additional 22,629 shares during the last quarter. Strs Ohio acquired a new position in shares of Semtech in the 1st quarter worth approximately $65,000. Finally, Cetera Investment Advisers purchased a new position in shares of Semtech during the second quarter worth $226,000.

Semtech Trading Up 0.7%

Shares of Semtech stock opened at $125.88 on Tuesday. The firm has a market cap of $11.73 billion, a price-to-earnings ratio of -322.77 and a beta of 2.31. Semtech Corporation has a 52-week low of $46.02 and a 52-week high of $177.35. The company's 50-day simple moving average is $149.26 and its 200-day simple moving average is $109.07. 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 (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.06. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. During the same quarter last year, the firm earned $0.38 earnings per share. The firm's revenue was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, equities research analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Asaf Silberstein sold 8,500 shares of Semtech stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the sale, the chief operating officer directly owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing 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, Director Paul V. Walsh, Jr. sold 500 shares of the company's stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total value of $82,495.00. Following the transaction, the director directly owned 28,100 shares in the company, valued at $4,636,219. This represents a 1.75% 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. Over the last ninety days, insiders sold 22,734 shares of company stock worth $3,256,056. Corporate insiders own 0.44% of the company's stock.

Wall Street Analyst Weigh In

SMTC has been the subject of several recent research reports. UBS Group raised their price objective on shares of Semtech from $165.00 to $225.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Northland Securities cut Semtech from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 26th. Robert W. Baird increased their target price on shares of Semtech from $110.00 to $225.00 and gave the company an "outperform" rating in a research report on Wednesday, May 27th. Benchmark raised their price target on Semtech from $120.00 to $230.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Semtech in a research note on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $189.07.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.