Semtech (NASDAQ:SMTC) Stock Price Up 6.4% - Here's Why

Key Points

• Semtech shares rose 6.4% to approximately $169.38, following strong quarterly results and positive analyst sentiment.
• The company reported quarterly EPS of $0.71, beating estimates of $0.61, while revenue increased 32.7% year over year to $341.87 million.
• Analysts maintain a consensus “Moderate Buy” rating, with an average price target of $204.71; however, insiders have sold 23,234 shares worth about $3.3 million over the past 90 days.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) rose 6.4% on Friday . The stock traded as high as $170.43 and last traded at $169.3780. 1,181,316 shares were traded during trading, a decline of 57% from the average daily volume of 2,744,295 shares. The stock had previously closed at $159.13.

Wall Street Analysts Forecast Growth

SMTC has been the subject of several recent research reports. Northland Securities upgraded Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 price objective for the company in a research note on Thursday, August 27th. BMO Capital Markets began coverage on shares of Semtech in a research note on Wednesday, August 26th. They set an "outperform" rating and a $155.00 target price on the stock. Oppenheimer set a $200.00 target price on shares of Semtech in a report on Wednesday, May 27th. TD Cowen boosted their price target on shares of Semtech from $210.00 to $215.00 and gave the stock a "buy" rating in a report on Monday, June 22nd. Finally, Needham & Company LLC reissued a "buy" rating and issued a $200.00 price objective on shares of Semtech in a research report on Wednesday, August 26th. Fifteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Semtech currently has a consensus rating of "Moderate Buy" and a consensus target price of $204.71.

Semtech Trading Up 6.8%

The stock has a market capitalization of $15.87 billion, a PE ratio of 112.44 and a beta of 2.35. 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 business's 50-day moving average is $133.22 and its two-hundred day moving average is $123.06.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $328.67 million. During the same quarter last year, the company posted $0.41 earnings per share. The business'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. On average, analysts anticipate that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Julie Ruehl sold 1,500 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $145.00, for a total value of $217,500.00. Following the completion of the sale, the director directly owned 7,140 shares of the company's stock, valued at approximately $1,035,300. This represents a 17.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of Semtech stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total transaction of $145,897.70. Following the completion of the transaction, the chief financial officer directly owned 34,896 shares in the company, valued at $5,248,707.36. The trade was a 2.70% decrease in their ownership of the stock. 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 23,234 shares of company stock valued at $3,304,706 in the last 90 days. Company insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. FNY Investment Advisers LLC grew its holdings in shares of Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock worth $32,000 after buying an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Semtech during the 2nd quarter valued at approximately $32,000. Banque Cantonale Vaudoise purchased a new stake in Semtech during the 1st quarter valued at approximately $33,000. IFP Advisors Inc acquired a new stake in Semtech during the 4th quarter worth approximately $53,000. Finally, Allworth Financial LP acquired a new stake in Semtech during the 2nd quarter worth approximately $55,000.

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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