Semtech Corporation (NASDAQ:SMTC) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst consensus: Sixteen analysts give Semtech a consensus rating of "Moderate Buy" (14 buys, 1 hold, 1 sell) with a 12‑month average target of $95.71 and multiple firms recently raising targets (e.g., Needham $105, Oppenheimer $110, Stifel $98).
• Recent results & valuation: Semtech slightly beat estimates with $0.44 EPS and $274.4M revenue (revenue +9.3% YoY), but the company still shows a negative net margin and negative P/E; market cap is about $10.0B and shares are trading near their 12‑month high (~$108).
• Insider and institutional activity: Insiders sold ~46,384 shares (~$3.92M) over the past 90 days, while large institutions like Vanguard and Ameriprise materially increased their holdings.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the sixteen analysts that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and fourteen have issued a buy recommendation on the company. The average 12-month target price among analysts that have covered the stock in the last year is $95.7143.

Several equities research analysts have commented on the stock. Morgan Stanley upped their target price on shares of Semtech from $75.00 to $85.00 and gave the company an "equal weight" rating in a research note on Monday, March 16th. TD Cowen reissued a "buy" rating on shares of Semtech in a report on Tuesday, February 24th. Stifel Nicolaus upped their price objective on shares of Semtech from $90.00 to $98.00 and gave the company a "buy" rating in a research report on Tuesday, March 17th. Needham & Company LLC upped their price objective on shares of Semtech from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Tuesday, March 17th. Finally, Oppenheimer raised their price objective on Semtech from $100.00 to $110.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 17th.

Semtech Trading Up 2.6%

NASDAQ SMTC opened at $107.81 on Friday. Semtech has a 12 month low of $32.77 and a 12 month high of $113.05. The stock has a 50-day simple moving average of $88.30 and a 200 day simple moving average of $79.72. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $10.04 billion, a PE ratio of -245.02 and a beta of 2.22.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its earnings results on Monday, March 16th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.43 by $0.01. The firm had revenue of $274.40 million for the quarter, compared to analysts' expectations of $273.14 million. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The company's revenue was up 9.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.40 earnings per share. Research analysts forecast that Semtech will post 1.6 EPS for the current year.

Insider Activity at Semtech

In related news, EVP Jason Elliot Green sold 7,500 shares of the 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 completion of the sale, the executive vice president directly owned 8,811 shares of the company's stock, valued at approximately $720,123.03. This represents a 45.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Mark Lin sold 974 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $78.42, for a total transaction of $76,381.08. Following the sale, the chief financial officer owned 33,343 shares in the company, valued at $2,614,758.06. This trade represents a 2.84% decrease in their ownership of the stock. 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 have sold a total of 46,384 shares of company stock valued at $3,920,140 over the last 90 days. Insiders own 0.48% of the company's stock.

Institutional Investors Weigh In On Semtech

Several large investors have recently made changes to their positions in SMTC. Vanguard Group Inc. lifted its position in Semtech by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock valued at $873,842,000 after acquiring an additional 298,987 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Semtech by 3.7% in the third quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company's stock valued at $526,861,000 after purchasing an additional 261,647 shares in the last quarter. Capital Research Global Investors boosted its position in shares of Semtech by 13.9% during the third quarter. Capital Research Global Investors now owns 4,691,676 shares of the semiconductor company's stock worth $335,220,000 after buying an additional 571,372 shares during the period. State Street Corp grew its holdings in shares of Semtech by 1.5% during the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock worth $182,235,000 after buying an additional 60,788 shares in the last quarter. Finally, Whale Rock Capital Management LLC raised its position in Semtech by 11.3% in the 4th quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company's stock valued at $287,499,000 after buying an additional 396,504 shares during the last quarter.

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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