Semtech (NASDAQ:SMTC) Shares Climb 12.6% - Still a Buy?

Key Points

• Semtech shares jumped 12.6% to about $116.24, while trading volume was 73% below the average session volume.
• The company beat quarterly estimates, reporting EPS of $0.71 versus $0.61 expected and revenue of $341.87 million versus $328.67 million; revenue rose 32.7% year over year.
• Analysts’ consensus rating is “Moderate Buy”, based on one Strong Buy, 15 Buy, and three Hold ratings, with an average price target of $212.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) shares rose 12.6% on Monday. The company traded as high as $115.43 and last traded at $116.2420. Approximately 783,155 shares were traded during mid-day trading, a decline of 73% from the average session volume of 2,906,853 shares. The stock had previously closed at $103.21.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SMTC. Zacks Research raised shares of Semtech from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Benchmark restated a "buy" rating on shares of Semtech in a research note on Thursday, August 20th. Weiss Ratings cut Semtech from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday. UBS Group increased their price target on Semtech from $225.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, August 26th. Finally, Robert W. Baird upped their target price on Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Semtech currently has an average rating of "Moderate Buy" and an average price target of $212.00.

Semtech Trading Up 12.5%

The company has a fifty day moving average of $155.15 and a 200-day moving average of $125.55. 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 has a market capitalization of $10.84 billion, a price-to-earnings ratio of 76.86 and a beta of 2.50.

Semtech (NASDAQ:SMTC - Get Free Report) last released its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating 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 the consensus estimate of $328.67 million. During the same quarter last year, the business posted $0.41 earnings per share. The business's quarterly 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, equities research analysts anticipate that Semtech Corporation will post 2.80 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other news, EVP Jason Elliot Green sold 2,766 shares of the firm's stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total value of $526,508.10. Following the transaction, the executive vice president directly owned 7,367 shares of the company's stock, valued at approximately $1,402,308.45. This trade represents a 27.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at 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 business's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $139.44, for a total transaction of $69,720.00. Following the transaction, the director owned 26,100 shares in the company, valued at $3,639,384. The trade was a 1.88% decrease in their ownership of the stock. 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 have sold a total of 14,237 shares of company stock worth $2,337,597 over the last 90 days. Corporate insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. North Dakota State Investment Board grew its position in shares of Semtech by 3.8% in the third quarter. North Dakota State Investment Board now owns 2,838 shares of the semiconductor company's stock valued at $506,000 after purchasing an additional 105 shares in the last quarter. Corient Private Wealth LP boosted its stake in Semtech by 4.0% during the second quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company's stock worth $515,000 after buying an additional 122 shares during the last quarter. REAP Financial Group LLC purchased a new stake in Semtech in the 3rd quarter valued at $27,000. SBI Securities Co. Ltd. increased its stake in shares of Semtech by 29.6% in the 3rd quarter. SBI Securities Co. Ltd. now owns 679 shares of the semiconductor company's stock worth $121,000 after acquiring an additional 155 shares during the last quarter. Finally, ABS Investment Management LLC acquired a new stake in shares of Semtech in the 2nd quarter worth $178,035,000.

Semtech Company Profile

Semtech Corporation is a semiconductor and connectivity technology company that develops products for communications, industrial, and consumer applications. Its portfolio includes analog and mixed-signal semiconductors, signal-integrity and protection products, and power-management solutions used in electronic systems.

The company is known for LoRa technology, which supports low-power, long-range wireless communications for Internet of Things (IoT) devices. Semtech also provides cellular IoT modules, routers, and related services, expanding its connectivity offerings through its acquisition of Sierra Wireless in 2023.

Founded in 1960, Semtech serves customers around the world through its international operations and sales network.

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.