Semtech Corporation (NASDAQ:SMTC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts give Semtech an average "Moderate Buy" rating (14 buys, 1 hold, 1 sell) with a mean 12‑month price target of $93.14, and several firms have recently raised targets (Benchmark $115, Craig Hallum $105, Stifel $98, Piper $95).
• Semtech slightly beat the quarter (EPS $0.44 vs $0.43, revenue $274.4M vs $273.1M) with revenue up 9.3% year‑over‑year, but it reported a negative net margin (-3.86%) and analysts expect -0.02 EPS for the fiscal year.
• Company insiders have been net sellers recently — 52,918 shares sold worth $4.37M in the past three months (including sales by the COO and an EVP) — leaving insiders owning 0.48% of the stock.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) have earned an average rating of "Moderate Buy" from the sixteen analysts that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and fourteen have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $93.1429.

A number of research firms have commented on SMTC. Benchmark restated a "buy" rating and issued a $115.00 price target on shares of Semtech in a research report on Tuesday, March 17th. Wall Street Zen lowered shares of Semtech from a "strong-buy" rating to a "buy" rating in a research report on Monday, January 26th. Stifel Nicolaus upped their target price on shares of Semtech from $90.00 to $98.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Piper Sandler reiterated an "overweight" rating and set a $95.00 target price (up from $70.00) on shares of Semtech in a research report on Thursday, December 11th. Finally, Craig Hallum upped their target price on shares of Semtech from $80.00 to $105.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th.

Semtech Price Performance

NASDAQ:SMTC opened at $83.08 on Wednesday. The firm has a market cap of $7.72 billion, a PE ratio of -188.82 and a beta of 2.06. Semtech has a 12 month low of $24.05 and a 12 month high of $96.46. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89. The company's 50-day moving average price is $83.97 and its two-hundred day moving average price is $76.03.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings results on Monday, March 16th. The semiconductor company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.01. The firm had revenue of $274.40 million for the quarter, compared to analyst estimates of $273.14 million. Semtech had a negative net margin of 3.86% and a positive return on equity of 18.09%. The company's revenue for the quarter was up 9.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.40 earnings per share. On average, equities analysts anticipate that Semtech will post -0.02 EPS for the current fiscal year.

Insider Activity at Semtech

In other news, COO Asaf Silberstein sold 10,000 shares of the company's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $92.00, for a total transaction of $920,000.00. Following the transaction, the chief operating officer directly owned 68,496 shares in the company, valued at approximately $6,301,632. This represents a 12.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jason Elliot Green sold 7,500 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $81.73, for a total transaction of $612,975.00. Following the transaction, the executive vice president owned 8,811 shares in the company, valued at $720,123.03. The trade was a 45.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 52,918 shares of company stock valued at $4,372,297 in the last three months. 0.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Semtech

Large investors have recently modified their holdings of the stock. Hantz Financial Services Inc. lifted its position in shares of Semtech by 243.2% during the third quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company's stock worth $36,000 after purchasing an additional 360 shares in the last quarter. Salomon & Ludwin LLC bought a new stake in shares of Semtech during the third quarter worth approximately $41,000. AlphaQuest LLC raised its stake in shares of Semtech by 42.5% during the third quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company's stock worth $41,000 after buying an additional 173 shares during the last quarter. Jones Financial Companies Lllp raised its stake in shares of Semtech by 65.5% during the third quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company's stock worth $42,000 after buying an additional 235 shares during the last quarter. Finally, Assetmark Inc. raised its stake in shares of Semtech by 1,745.5% during the third quarter. Assetmark Inc. now owns 609 shares of the semiconductor company's stock worth $44,000 after buying an additional 576 shares during the last quarter.

About Semtech

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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