Semtech (NASDAQ:SMTC) Hits New 12-Month High Following Analyst Upgrade

Key Points

• Semtech shares reached a new 52-week high after Oppenheimer raised its price target from $200 to $225 and maintained an “outperform” rating. The stock traded as high as $192.80, up from its prior close of $186.59.
• Analyst sentiment remains broadly positive, with one Strong Buy, 15 Buy, and three Hold ratings; the consensus is “Moderate Buy” with a target price of $206.18. Baird was the most bullish, lifting its target to $300.
• Semtech beat quarterly expectations, reporting $0.71 in EPS versus $0.61 expected and revenue of $341.87 million versus $328.67 million. Revenue increased 32.7% year over year, although insiders sold 22,768 shares worth about $3.2 million over the past three months.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s stock price reached a new 52-week high on Friday after Oppenheimer raised their price target on the stock from $200.00 to $225.00. Oppenheimer currently has an outperform rating on the stock. Semtech traded as high as $192.80 and last traded at $194.0540, with a volume of 68227 shares traded. The stock had previously closed at $186.59.

Other research analysts also recently issued reports about the company. Robert W. Baird lifted their price objective on Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Morgan Stanley raised their price target on Semtech from $175.00 to $195.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 26th. Northland Securities raised Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 price target for the company in a report on Thursday, August 27th. BMO Capital Markets began coverage on Semtech in a research note on Wednesday, August 26th. They set an "outperform" rating and a $155.00 price objective on the stock. Finally, Benchmark reiterated a "buy" rating on shares of Semtech in a research report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $206.18.

Insider Buying and Selling

In other Semtech news, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total transaction of $294,093.60. Following the transaction, the executive vice president owned 8,611 shares of the company's stock, valued at $1,118,568.90. This represents a 20.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rodolpho Cardenuto sold 5,321 shares of the firm's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $165.00, for a total value of $877,965.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 22,768 shares of company stock worth $3,214,795 in the last three months. 0.44% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SMTC. Andar Capital Management HK Ltd purchased a new stake in Semtech in the second quarter valued at approximately $162,000,000. BlackRock Inc. purchased a new position in Semtech during the second quarter worth approximately $1,577,947,000. Geode Capital Management LLC raised its stake in Semtech by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company's stock worth $154,704,000 after purchasing an additional 6,715 shares during the period. Fred Alger Management LLC boosted its holdings in shares of Semtech by 12.0% in the 4th quarter. Fred Alger Management LLC now owns 859,855 shares of the semiconductor company's stock valued at $63,363,000 after purchasing an additional 92,396 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Semtech by 396.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company's stock valued at $136,298,000 after purchasing an additional 672,447 shares during the last quarter.

Semtech Price Performance

The company has a market capitalization of $18.39 billion, a PE ratio of 127.05 and a beta of 2.41. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The company's 50 day moving average price is $145.02 and its 200-day moving average price is $132.01.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same period last year, the company posted $0.41 EPS. The business's quarterly revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts forecast that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Semtech Company Profile

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company's portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.

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