Semtech (NASDAQ:SMTC) Sets New 12-Month High - Here's What Happened

Key Points

• Semtech shares reached a new 52-week high, trading as high as $113.13 (last at $112.40) on heavy volume, up from a prior close of $107.10.
• Analyst sentiment is largely positive—14 Buys, 1 Hold and 1 Sell give a consensus "Moderate Buy" despite an average target of $95.71, while firms like Benchmark and Oppenheimer have recently raised targets to $120 and $110 respectively.
• Quarterly results beat estimates but margins remain pressured: Q earnings were $0.44 vs. $0.43 expected and revenue rose 9.3% to $274.4M, though net margin was negative (−3.86%) and the trailing P/E is negative.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $113.13 and last traded at $112.40, with a volume of 600476 shares trading hands. The stock had previously closed at $107.10.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SMTC. Wall Street Zen cut Semtech from a "strong-buy" rating to a "buy" rating in a research report on Monday, January 26th. Weiss Ratings cut Semtech from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Tuesday, March 24th. Benchmark upped their price target on Semtech from $115.00 to $120.00 and gave the company a "buy" rating in a research report on Tuesday, April 14th. Oppenheimer upped their price target on Semtech from $100.00 to $110.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. Finally, Craig Hallum upped their price target on Semtech from $80.00 to $105.00 and gave the company a "buy" rating in a research report on Tuesday, March 17th. Fourteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Semtech currently has a consensus rating of "Moderate Buy" and an average target price of $95.71.

Semtech Stock Performance

The firm has a fifty day moving average of $88.30 and a 200-day moving average of $79.80. The firm has a market cap of $10.52 billion, a P/E ratio of -256.77 and a beta of 2.22. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its quarterly earnings results on Monday, March 16th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.01. The business 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 firm's quarterly 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 predict that Semtech Corporation will post 1.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Martin Burvill sold 2,500 shares of Semtech stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $88.98, for a total value of $222,450.00. Following the sale, the director owned 4,409 shares of the company's stock, valued at approximately $392,312.82. This trade represents a 36.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark Lin sold 974 shares of Semtech stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $78.42, for a total value of $76,381.08. Following the completion of the sale, the chief financial officer directly owned 33,343 shares in the company, valued at approximately $2,614,758.06. This represents a 2.84% decrease in their position. 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 46,384 shares of company stock worth $3,920,140 in the last 90 days. Company insiders own 0.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SMTC. Jones Financial Companies Lllp boosted its stake in shares of Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after acquiring an additional 2,565 shares during the period. Empowered Funds LLC grew its stake in shares of Semtech by 11.5% in 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Semtech by 5.8% in the first 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 acquired a new position in shares of Semtech in the first quarter valued at about $65,000. Finally, Cetera Investment Advisers acquired a new position in shares of Semtech in the second quarter valued at about $226,000.

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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