Semtech (NASDAQ:SMTC) Hits New 52-Week High - Here's Why

Key Points

• Semtech shares hit a new 52-week high of $177.99, up from a previous close of $167.55, amid strong investor momentum.
• Analysts remain bullish, with 15 Buy ratings and four Holds, a “Moderate Buy” consensus, and an average price target of $204.71.
• Recent quarterly results exceeded expectations: EPS came in at $0.71 versus $0.61 expected, while revenue rose 32.7% year over year to $341.87 million.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $177.99 and last traded at $175.8210, with a volume of 1107305 shares changing hands. The stock had previously closed at $167.55.

Wall Street Analysts Forecast Growth

SMTC has been the topic of several research reports. Roth Capital set a $220.00 price target on shares of Semtech in a research report on Wednesday, August 26th. Mizuho set a $225.00 target price on shares of Semtech in a research note on Wednesday, May 27th. B. Riley Financial increased their target price on shares of Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. UBS Group boosted their price target on shares of Semtech from $225.00 to $230.00 and gave the stock a "buy" rating in a research note on Wednesday, August 26th. Finally, Northland Securities upgraded Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 price objective on the stock in a research note on Thursday, August 27th. Fifteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $204.71.

Semtech Stock Performance

The stock's 50-day simple moving average is $135.29 and its 200 day simple moving average is $124.98. The company has a market capitalization of $16.88 billion, a PE ratio of 119.78 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70.

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

Insiders Place Their Bets

In other news, COO Asaf Silberstein sold 8,500 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the sale, the chief operating officer owned 96,862 shares of the company's stock, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $145.00, for a total value of $217,500.00. Following the sale, the director owned 7,140 shares of the company's stock, valued at approximately $1,035,300. The trade was a 17.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 23,917 shares of company stock worth $3,413,918. 0.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Semtech

Several large investors have recently bought and sold shares of the stock. FNY Investment Advisers LLC increased its position in shares of Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock worth $32,000 after purchasing an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Semtech during the 2nd quarter worth approximately $32,000. Banque Cantonale Vaudoise acquired a new position in Semtech during the first quarter worth approximately $33,000. IFP Advisors Inc acquired a new position in Semtech during the fourth quarter worth approximately $53,000. Finally, Allworth Financial LP purchased a new stake in Semtech in the second quarter valued at approximately $55,000.

Semtech Company Profile

Semtech Corporation NASDAQ: SMTC is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.

The company's portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.

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