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

Key Points

• Semtech Corporation has a consensus rating of "Moderate Buy" from thirteen analysts, with eleven giving buy recommendations and two recommending a hold.
• The average 12-month price target for Semtech shares is $59.58, with target prices ranging from $43.00 to $68.00 set by various analysts.
• In its latest earnings report, Semtech posted an EPS of $0.31, exceeding analysts' expectations of $0.21, alongside a revenue of $251.10 million, marking a 21.8% year-over-year increase.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) has been given an average rating of "Moderate Buy" by the twelve ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $60.4167.

Several equities research analysts have commented on the company. Stifel Nicolaus upped their price target on Semtech from $45.00 to $54.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Northland Securities upped their price target on Semtech from $48.00 to $53.00 and gave the stock an "outperform" rating in a research note on Tuesday. Benchmark restated a "buy" rating and set a $68.00 price target on shares of Semtech in a research note on Tuesday. UBS Group dropped their price target on Semtech from $60.00 to $55.00 and set a "buy" rating for the company in a research note on Monday, May 5th. Finally, Craig Hallum upped their price target on Semtech from $55.00 to $62.00 and gave the stock a "buy" rating in a research note on Tuesday.

Insider Activity

In other Semtech news, CFO Mark Lin sold 999 shares of the company's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $43.84, for a total transaction of $43,796.16. Following the completion of the sale, the chief financial officer directly owned 17,211 shares in the company, valued at $754,530.24. This represents a 5.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Asaf Silberstein sold 2,000 shares of the company's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $42.98, for a total value of $85,960.00. Following the sale, the chief operating officer owned 105,996 shares of the company's stock, valued at $4,555,708.08. This represents a 1.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.48% of the company's stock.

Institutional Investors Weigh In On Semtech

A number of large investors have recently modified their holdings of SMTC. Whale Rock Capital Management LLC grew its stake in shares of Semtech by 364.2% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,266,202 shares of the semiconductor company's stock valued at $202,015,000 after buying an additional 2,562,602 shares in the last quarter. Westfield Capital Management Co. LP grew its stake in shares of Semtech by 107.8% in the second quarter. Westfield Capital Management Co. LP now owns 2,747,260 shares of the semiconductor company's stock valued at $124,011,000 after buying an additional 1,424,909 shares in the last quarter. Ameriprise Financial Inc. grew its stake in shares of Semtech by 15.8% in the first quarter. Ameriprise Financial Inc. now owns 6,445,641 shares of the semiconductor company's stock valued at $221,737,000 after buying an additional 877,422 shares in the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Semtech in the fourth quarter valued at about $51,315,000. Finally, Fred Alger Management LLC grew its stake in shares of Semtech by 122.6% in the fourth quarter. Fred Alger Management LLC now owns 1,491,844 shares of the semiconductor company's stock valued at $92,271,000 after buying an additional 821,671 shares in the last quarter.

Semtech Trading Down 4.1%

Shares of NASDAQ SMTC traded down $2.47 on Tuesday, reaching $58.09. 1,596,677 shares of the company traded hands, compared to its average volume of 2,094,042. Semtech has a fifty-two week low of $24.05 and a fifty-two week high of $79.52. The company has a 50 day moving average of $49.85 and a 200 day moving average of $40.36. The company has a current ratio of 2.53, a quick ratio of 1.81 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $5.04 billion, a PE ratio of 242.04 and a beta of 1.94.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its quarterly earnings data on Tuesday, May 27th. The semiconductor company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.10. Semtech had a net margin of 2.38% and a return on equity of 18.28%. The company had revenue of $251.10 million during the quarter, compared to the consensus estimate of $249.79 million. During the same quarter in the prior year, the company posted $0.06 EPS. The company's quarterly revenue was up 21.8% compared to the same quarter last year. On average, equities research analysts forecast that Semtech will post -0.02 earnings per share for the current fiscal year.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.