Semtech Corporation (NASDAQ:SMTC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Semtech “Moderate Buy”: Of 18 analysts, 13 recommend buying, one recommends a strong buy, three advise holding, and one rates it a sell. The average 12-month price target is $189.07.
• Semtech’s latest quarterly results exceeded expectations, with EPS of $0.51 versus the $0.45 consensus and revenue of $291.02 million versus $283.53 million expected. Revenue increased 15.9% year over year.
• Shares opened at $131.27 after declining 5.8%, with the stock trading below its 52-week high of $177.35. Insiders sold 22,234 shares worth $3.2 million over the past three months, while several institutional investors increased their holdings.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) have earned an average rating of "Moderate Buy" from the eighteen ratings firms that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $189.0667.

Several analysts have issued reports on SMTC shares. Robert W. Baird upped their target price on Semtech from $110.00 to $225.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 27th. Zacks Research raised shares of Semtech from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 29th. Stifel Nicolaus boosted their price objective on shares of Semtech from $157.00 to $188.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Morgan Stanley upped their price objective on shares of Semtech from $155.00 to $175.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 27th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $200.00 price objective on shares of Semtech in a research note on Monday, July 13th.

Insiders Place Their Bets

In other news, Director Paul V. Walsh, Jr. sold 500 shares of the business's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total value of $82,495.00. Following the completion of the sale, the director owned 28,100 shares of the company's stock, valued at approximately $4,636,219. The trade was a 1.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the sale, the chief financial officer owned 34,896 shares of the company's stock, valued at $5,248,707.36. This represents 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 sold a total of 22,234 shares of company stock valued at $3,203,091 over the last three months. 0.44% of the stock is currently owned by company insiders.

Institutional Trading of Semtech

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Royce & Associates LP boosted its holdings in shares of Semtech by 144.5% during the fourth quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company's stock worth $7,930,000 after purchasing an additional 63,603 shares during the period. Argos Wealth Advisors LLC purchased a new position in Semtech during the 4th quarter valued at about $640,000. Geode Capital Management LLC increased its holdings in Semtech by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company's stock valued at $154,704,000 after purchasing an additional 6,715 shares during the period. Strs Ohio raised its position in Semtech by 558.9% during the 4th quarter. Strs Ohio now owns 48,100 shares of the semiconductor company's stock valued at $3,544,000 after purchasing an additional 40,800 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in Semtech by 2.6% during the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock valued at $873,842,000 after purchasing an additional 298,987 shares during the last quarter.

Semtech Trading Down 5.8%

Shares of SMTC stock opened at $131.27 on Tuesday. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The business has a 50-day moving average price of $142.72 and a two-hundred day moving average price of $114.30. Semtech has a 12-month low of $46.02 and a 12-month high of $177.35. The firm has a market cap of $12.23 billion, a P/E ratio of -336.59 and a beta of 2.35.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. The firm had revenue of $291.02 million during the quarter, compared to analysts' expectations of $283.53 million. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The company's revenue for the quarter was up 15.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Equities analysts anticipate that Semtech will post 1.81 EPS for the current fiscal year.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company's products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech's portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.

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