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

Key Points

• Semtech has a consensus analyst rating of “Moderate Buy” from 18 covering firms, with an average 12-month price target of about $189.07.
• Recent analyst updates were mostly constructive, including higher price targets from Craig Hallum, B. Riley Financial, and Robert W. Baird, though Citigroup downgraded the stock to market perform.
• The company also reported strong quarterly results, beating EPS and revenue estimates, but the stock was down 5.6% in Friday trading and some insiders have recently sold shares.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the eighteen research firms that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, three have given a hold recommendation, thirteen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $189.0667.

Several brokerages have recently issued reports on SMTC. Craig Hallum lifted their price objective on shares of Semtech from $105.00 to $205.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Morgan Stanley increased their target price 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. Citigroup cut shares of Semtech from a "buy" rating to a "market perform" rating in a report on Tuesday, May 26th. B. Riley Financial lifted their price target on shares of Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Finally, Robert W. Baird upped their price target on Semtech from $110.00 to $225.00 and gave the company an "outperform" rating in a report on Wednesday, May 27th.

Insider Buying and Selling at Semtech

In related news, COO Asaf Silberstein sold 8,500 shares of Semtech stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the transaction, the chief operating officer directly owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the business's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% 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. Over the last quarter, insiders sold 22,734 shares of company stock worth $3,256,056. 0.48% of the stock is owned by insiders.

Institutional Trading of Semtech

Institutional investors and hedge funds have recently bought and sold shares of the stock. Jones Financial Companies Lllp boosted its holdings in shares of Semtech by 12,214.3% in the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after buying an additional 2,565 shares during the period. Empowered Funds LLC raised its holdings in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after acquiring an additional 968 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Semtech by 5.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after acquiring an additional 22,629 shares in the last quarter. Strs Ohio purchased a new stake in shares of Semtech in the 1st quarter valued at approximately $65,000. Finally, Cetera Investment Advisers acquired a new position in Semtech in the 2nd quarter worth approximately $226,000.

Semtech Trading Down 5.6%

Semtech stock opened at $127.65 on Friday. 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 firm has a 50-day moving average price of $149.41 and a two-hundred day moving average price of $108.37. The firm has a market capitalization of $11.89 billion, a price-to-earnings ratio of -327.31 and a beta of 2.31. Semtech has a 52-week low of $46.02 and a 52-week high of $177.35.

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