Semtech (NASDAQ:SMTC) Shares Gap Up - What's Next?

Key Points

• Semtech shares jumped: The stock opened at $101.86 versus its prior close of $91.54 and was last trading at $97.25.
• Quarterly results beat expectations: Semtech reported EPS of $0.71 versus the $0.61 consensus and revenue of $341.87 million, up 32.7% year over year. The company guided to Q3 2027 EPS of $1.02–$1.08.
• Analyst sentiment is broadly positive: Semtech has a “Moderate Buy” consensus rating and an average price target of $213.11; however, company insiders sold 14,237 shares worth about $2.34 million over the last three months.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $91.54, but opened at $101.86. Semtech shares last traded at $97.25, with a volume of 495,476 shares.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Robert W. Baird increased their target price on shares of Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Wall Street Zen upgraded Semtech from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Roth Capital set a $220.00 price objective on shares of Semtech in a research note on Wednesday, August 26th. Weiss Ratings downgraded shares of Semtech from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday. Finally, Morgan Stanley set a $205.00 target price on Semtech in a research note on Friday, October 16th. One equities research 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's stock. Based on data from MarketBeat.com, Semtech presently has a consensus rating of "Moderate Buy" and an average price target of $213.11.

Semtech Stock Up 5.5%

The firm has a market cap of $9.01 billion, a price-to-earnings ratio of 63.67 and a beta of 2.50. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The stock's 50 day moving average is $155.93 and its 200 day moving average is $125.42.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.10. The firm had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The firm's quarterly revenue was up 32.7% on a year-over-year basis. During the same period last year, the company posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts forecast that Semtech Corporation will post 2.80 EPS for the current year.

Insider Buying and Selling

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $138.71, for a total value of $277,420.00. Following the completion of the transaction, the chief executive officer directly owned 60,799 shares in the company, valued at $8,433,429.29. This trade represents a 3.18% decrease in their ownership of the stock. The sale was disclosed in a filing 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 C. Cardenuto sold 5,321 shares of Semtech stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $165.00, for a total transaction of $877,965.00. The SEC filing for this sale provides additional information. Insiders have sold 14,237 shares of company stock valued at $2,337,597 in the last three months. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Semtech

A number of large investors have recently made changes to their positions in the business. Andar Capital Management HK Ltd purchased a new stake in shares of Semtech during the 2nd quarter worth about $162,000,000. BlackRock Inc. bought a new position in Semtech in the 2nd quarter worth $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Semtech by 396.3% during 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 worth $136,298,000 after purchasing an additional 672,447 shares during the last quarter. Atreides Management LP acquired a new position in shares of Semtech during the second quarter worth approximately $89,214,000. Finally, Bank of New York Mellon Corp bought a new stake in Semtech in the 2nd quarter valued at $87,725,000.

About Semtech

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.

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.