Semtech (NASDAQ:SMTC) Shares Gap Up Following Analyst Upgrade

Key Points

• Semtech shares jumped 4.2% after Northland Securities upgraded the stock from “market perform” to “outperform” and set a $186 price target; shares opened at $144.62 versus a prior close of $136.73.
• Analyst sentiment is broadly positive, with Semtech holding a “Moderate Buy” consensus rating and an average price target of $213.11, supported by multiple recent “buy” and “strong-buy” recommendations.
• The company recently exceeded quarterly expectations, reporting $0.71 in adjusted earnings per share versus $0.61 expected and revenue of $341.87 million, up 32.7% year over year.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) gapped up before the market opened on Monday after Northland Securities upgraded the stock from a market perform rating to an outperform rating. The stock had previously closed at $136.73, but opened at $144.62. Northland Securities now has a $186.00 price target on the stock. Semtech shares last traded at $141.0140, with a volume of 406,175 shares.

Several other equities research analysts have also recently issued reports on the stock. UBS Group lifted their price objective on shares of Semtech from $225.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, August 26th. Seaport Research Partners initiated coverage on Semtech in a report on Tuesday, September 22nd. They issued a "buy" rating and a $200.00 target price on the stock. Wall Street Zen upgraded Semtech from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Zacks Research upgraded Semtech from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Finally, New Street Research set a $230.00 price target on Semtech in a report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $213.11.

Insider Activity

In other Semtech news, Director Paul Walsh, Jr. sold 500 shares of the firm's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total transaction of $86,305.00. Following the transaction, the director directly owned 26,600 shares of the company's stock, valued at approximately $4,591,426. This trade represents a 1.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $138.71, for a total value of $277,420.00. Following the transaction, the chief executive officer directly owned 60,799 shares in the company, valued at approximately $8,433,429.29. This represents a 3.18% 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. Insiders have sold 13,737 shares of company stock worth $2,267,877 over the last 90 days. 0.44% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc lifted its holdings in shares of Semtech by 30.7% during the 3rd quarter. IFP Advisors Inc now owns 936 shares of the semiconductor company's stock valued at $167,000 after acquiring an additional 220 shares in the last quarter. TD Waterhouse Canada Inc. increased its holdings in Semtech by 21.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 4,876 shares of the semiconductor company's stock valued at $911,000 after purchasing an additional 865 shares in the last quarter. Pension & Wealth Management Advisors Inc. acquired a new stake in Semtech in the 3rd quarter valued at $53,000. Assenagon Asset Management S.A. increased its holdings in Semtech by 56.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 546,422 shares of the semiconductor company's stock valued at $97,454,000 after purchasing an additional 196,734 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of Semtech by 23.3% in the third quarter. GAMMA Investing LLC now owns 6,045 shares of the semiconductor company's stock worth $1,078,000 after buying an additional 1,142 shares during the period.

Semtech Trading Up 4.2%

The firm has a fifty day moving average of $156.97 and a 200 day moving average of $139.69. The firm has a market capitalization of $13.30 billion, a PE ratio of 94.20 and a beta of 2.41. 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 released its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The firm had revenue of $341.87 million during the quarter, compared to analysts' expectations of $328.67 million. During the same quarter in the prior year, the business earned $0.41 EPS. Semtech'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. Equities research analysts expect that Semtech Corporation will post 2.75 EPS for the current year.

Semtech Company Profile

Semtech Corporation NASDAQ: SMTC is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company's products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.

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