Semtech (NASDAQ:SMTC) Hits New 1-Year High - Time to Buy?

Key Points

• Semtech shares hit a new 52-week high, trading as high as $129.48 after closing at $121.81, reflecting strong recent momentum in the stock.
• Recent earnings showed modest beat-and-raise-style performance: Semtech posted $0.44 EPS versus $0.43 expected and revenue of $274.4 million versus $273.14 million expected, with quarterly revenue up 9.3% year over year.
• Wall Street sentiment remains broadly positive, with 14 Buy ratings and a consensus “Moderate Buy” view, though the average price target of $95.71 sits well below the current share price.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s stock price reached a new 52-week high on Monday . The stock traded as high as $129.48 and last traded at $129.0580, with a volume of 134507 shares trading hands. The stock had previously closed at $121.81.

Wall Street Analysts Forecast Growth

SMTC has been the topic of several recent analyst reports. Robert W. Baird upped their price objective on shares of Semtech from $88.00 to $110.00 and gave the stock an "outperform" rating in a report on Tuesday, March 17th. Wall Street Zen lowered shares of Semtech from a "strong-buy" rating to a "buy" rating in a report on Monday, January 26th. Morgan Stanley upped their price objective on shares of Semtech from $75.00 to $85.00 and gave the stock an "equal weight" rating in a report on Monday, March 16th. Needham & Company LLC upped their price objective on shares of Semtech from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Tuesday, March 17th. Finally, Stifel Nicolaus upped their price objective on shares of Semtech from $90.00 to $98.00 and gave the stock a "buy" rating in a report on Tuesday, March 17th. Fourteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $95.71.

Semtech Stock Performance

The company has a market capitalization of $12.37 billion, a price-to-earnings ratio of -301.10 and a beta of 2.22. 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 stock's fifty day simple moving average is $90.10 and its 200-day simple moving average is $80.82.

Semtech (NASDAQ:SMTC - Get Free Report) last released 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 company 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 firm's quarterly revenue was up 9.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.40 EPS. Analysts predict that Semtech Corporation will post 1.6 EPS for the current year.

Insider Activity at Semtech

In other Semtech news, EVP Jason Elliot Green sold 7,500 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $81.73, for a total transaction of $612,975.00. Following the sale, the executive vice president directly owned 8,811 shares in the company, valued at $720,123.03. This represents a 45.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Paul V. Walsh, Jr. sold 500 shares of the stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $105.93, for a total transaction of $52,965.00. Following the sale, the director owned 23,779 shares in the company, valued at approximately $2,518,909.47. This trade represents a 2.06% 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 sold 36,384 shares of company stock worth $3,000,140 over the last 90 days. 0.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Semtech

A number of large investors have recently modified their holdings of SMTC. Banque Cantonale Vaudoise purchased a new stake in shares of Semtech in the 1st quarter valued at approximately $33,000. Hantz Financial Services Inc. increased its position in shares of Semtech by 243.2% in the 3rd quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 360 shares during the last quarter. AlphaQuest LLC increased its position in shares of Semtech by 42.5% in the 3rd quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company's stock valued at $41,000 after purchasing an additional 173 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of Semtech by 65.5% in the 3rd quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 235 shares during the last quarter. Finally, Assetmark Inc. increased its position in shares of Semtech by 1,745.5% in the 3rd quarter. Assetmark Inc. now owns 609 shares of the semiconductor company's stock valued at $44,000 after purchasing 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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