Semtech (NASDAQ:SMTC) Stock Falls 7.8% Following Insider Selling

Key Points

• Semtech shares fell 7.8% to about $172.71 after executive vice president Jason Elliot Green sold 2,766 shares worth approximately $526,500 under a pre-arranged Rule 10b5-1 trading plan.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $208.06, although Northland Securities recently downgraded the stock to “Market Perform.”
• Semtech reported stronger-than-expected quarterly results, including EPS of $0.71 versus the $0.61 consensus estimate and revenue growth of 32.7% year over year; several major institutional investors also established or expanded positions.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) traded down 7.8% on Monday following insider selling activity. The stock traded as low as $175.50 and last traded at $172.7080. Approximately 492,665 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 2,800,300 shares. The stock had previously closed at $187.30.

Specifically, 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 completion of the sale, the executive vice president directly owned 7,367 shares in the company, valued at approximately $1,402,308.45. This trade represents a 27.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several research analysts have recently commented on SMTC shares. Seaport Research Partners began coverage on Semtech in a research note on Tuesday, September 22nd. They set a "buy" rating and a $200.00 target price for the company. TD Cowen increased their price target on Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Stifel Nicolaus raised their price target on Semtech from $188.00 to $220.00 and gave the company a "buy" rating in a report on Monday, October 5th. BMO Capital Markets initiated coverage on shares of Semtech in a research report on Wednesday, August 26th. They set an "outperform" rating and a $155.00 price objective for the company. Finally, Northland Securities cut shares of Semtech from an "outperform" rating to a "market perform" rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $208.06.

Semtech Price Performance

The company's fifty day moving average price is $154.19 and its 200 day moving average price is $136.82. The company has a market capitalization of $16.28 billion, a P/E ratio of 115.47 and a beta of 2.41. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.

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 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 during the quarter, compared to analysts' expectations of $328.67 million. During the same period in the previous year, the company posted $0.41 earnings per share. The firm's revenue for the quarter 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, sell-side analysts forecast that Semtech Corporation will post 2.64 EPS for the current year.

Institutional Investors Weigh In On Semtech

A number of large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Semtech in the 2nd quarter valued at $1,577,947,000. ABS Investment Management LLC acquired a new position in shares of Semtech in the second quarter worth approximately $178,035,000. Andar Capital Management HK Ltd bought a new stake in shares of Semtech in the 2nd quarter valued at $162,000,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in 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 acquiring an additional 672,447 shares during the period. Finally, Atreides Management LP bought a new stake in Semtech in the second quarter worth approximately $89,214,000.

About Semtech

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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