Semtech (NASDAQ:SMTC) Stock Price Down 7.6% - Time to Sell?

Key Points

• Semtech shares fell 7.6% to about $154.51, with trading volume down 84% from its average. Despite the decline, analysts maintain a “Moderate Buy” consensus and an average price target of $204.71.
• Semtech recently exceeded quarterly expectations, reporting $0.71 EPS versus a $0.61 estimate and $341.87 million in revenue, up 32.7% year over year.
• Insiders sold 23,234 shares worth approximately $3.3 million over the past three months, though the transactions were conducted under pre-arranged Rule 10b5-1 trading plans.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) traded down 7.6% during trading on Monday . The stock traded as low as $151.32 and last traded at $154.5050. 430,377 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 2,739,300 shares. The stock had previously closed at $167.24.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on SMTC shares. Needham & Company LLC restated a "buy" rating and set a $200.00 price target on shares of Semtech in a research note on Wednesday, August 26th. BMO Capital Markets began coverage on shares of Semtech in a research note on Wednesday, August 26th. They issued an "outperform" rating and a $155.00 price target on the stock. Oppenheimer set a $200.00 price target on shares of Semtech in a research report on Wednesday, May 27th. Mizuho set a $225.00 price objective on shares of Semtech in a research report on Wednesday, May 27th. Finally, Robert W. Baird raised their target price on Semtech from $225.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Fifteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Semtech has a consensus rating of "Moderate Buy" and a consensus target price of $204.71.

Semtech Stock Performance

The stock has a market cap of $14.00 billion, a price-to-earnings ratio of 99.14 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The stock's 50-day moving average is $133.86 and its 200-day moving average is $123.62.

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 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 company had revenue of $341.87 million during the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the firm posted $0.41 EPS. Semtech's revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts anticipate that Semtech Corporation will post 2.64 EPS for the current fiscal year.

Insider Activity

In other Semtech news, EVP Jason Elliot Green sold 2,264 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares of the company's stock, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the company's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the transaction, the chief operating officer directly owned 96,862 shares of the company's stock, valued at approximately $12,378,963.60. This represents a 8.07% decrease in their position. 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 sold a total of 23,234 shares of company stock valued at $3,304,706 in the last three months. Company insiders own 0.44% of the company's stock.

Institutional Trading of Semtech

A number of institutional investors and hedge funds have recently bought and sold shares of SMTC. Jones Financial Companies Lllp raised its stake in shares of Semtech by 12,214.3% during the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock valued at $89,000 after purchasing an additional 2,565 shares during the period. Empowered Funds LLC lifted its stake in shares of Semtech by 11.5% in the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock worth $323,000 after acquiring an additional 968 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Semtech by 5.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after purchasing an additional 22,629 shares during the last quarter. Strs Ohio acquired a new stake in Semtech during the 1st quarter valued at approximately $65,000. Finally, Cetera Investment Advisers acquired a new stake in Semtech during the 2nd quarter valued at approximately $226,000.

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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