Semtech (NASDAQ:SMTC) Stock Price Up 4.9% - Here's Why

Key Points

• Semtech shares jumped 4.9% to $176.46, despite trading volume falling 73% below its average. The stock’s gain follows strong quarterly results, including $0.71 in EPS versus the $0.61 consensus and 32.7% year-over-year revenue growth.
• Analyst sentiment remains favorable: Semtech has a “Moderate Buy” consensus rating and an average price target of $212.47, with recent targets ranging as high as $230.
• Institutional investors increased exposure significantly, including new stakes from BlackRock and Andar Capital and large holding increases by UBS Asset Management and Assenagon. Meanwhile, insiders have sold $2.27 million in shares over the past 90 days.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) shot up 4.9% on Tuesday. The company traded as high as $176.00 and last traded at $176.4550. 760,459 shares traded hands during trading, a decline of 73% from the average daily volume of 2,819,530 shares. The stock had previously closed at $168.28.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on SMTC shares. Wall Street Zen upgraded shares of Semtech from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. Seaport Research Partners started coverage on shares of Semtech in a research note on Tuesday, September 22nd. They set a "buy" rating and a $200.00 price objective on the stock. Stifel Nicolaus boosted their target price on Semtech from $188.00 to $220.00 and gave the company a "buy" rating in a research note on Monday, October 5th. BMO Capital Markets reiterated an "outperform" rating and issued a $230.00 price target on shares of Semtech in a report on Tuesday. Finally, Benchmark restated a "buy" rating on shares of Semtech in a report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Semtech has an average rating of "Moderate Buy" and an average target price of $212.47.

Semtech Trading Up 1.4%

The company has a market cap of $15.92 billion, a P/E ratio of 112.71 and a beta of 2.41. 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 business has a 50 day moving average price of $155.18 and a 200-day moving average price of $137.46.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company had revenue of $341.87 million during the quarter, compared to the consensus estimate of $328.67 million. During the same quarter last year, the firm posted $0.41 EPS. The company's quarterly 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 forecast that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Insider Buying and Selling at Semtech

In other news, CEO Hong Q. Hou sold 2,000 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the completion of the sale, the chief executive officer owned 60,799 shares in the company, valued at $8,433,429.29. The trade was a 3.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rodolpho C. Cardenuto sold 5,321 shares of the business's stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total value of $877,965.00. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 13,737 shares of company stock worth $2,267,877. 0.44% of the stock is currently owned by corporate insiders.

Institutional Trading of Semtech

A number of institutional investors have recently bought and sold shares of SMTC. Andar Capital Management HK Ltd acquired a new stake in shares of Semtech in the 2nd quarter valued at $162,000,000. BlackRock Inc. bought a new stake in shares of Semtech during the second quarter worth about $1,577,947,000. 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 last quarter. Assenagon Asset Management S.A. grew its stake in shares of Semtech by 323.0% in the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company's stock worth $60,051,000 after purchasing an additional 596,373 shares during the last quarter. Finally, Atreides Management LP bought a new stake in shares of Semtech in the 2nd quarter valued at about $89,214,000.

Semtech Company Profile

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.

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.