Semtech (NASDAQ:SMTC) Shares Down 6.5% on Insider Selling

Key Points

• Shares down 6.5% intraday after insider selling — Director Paul V. Walsh, Jr. sold 500 shares at an average of $105.93 under a Rule 10b5-1 plan; the stock traded as low as $100.39 and last at $102.62 on volume of ~625,132 shares (down 69% vs. average).
• Strong analyst support but mixed price signals: 14 analysts rate Semtech a Buy (one Hold, one Sell) and several firms recently raised targets (up to $122), yet the MarketBeat consensus target is only $95.71, below the current share price.
• Solid quarterly results but negative P/E: Semtech reported $0.44 EPS vs. $0.43 expected and revenue of $274.4M (up 9.3% YoY), with a market cap of $9.52B and a reported price-to-earnings ratio of -230.98.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s share price was down 6.5% during mid-day trading on Monday following insider selling activity. The stock traded as low as $100.39 and last traded at $102.6210. Approximately 625,132 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 1,997,641 shares. The stock had previously closed at $109.79.

Specifically, Director Paul V. Walsh, Jr. sold 500 shares of the business's stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $105.93, for a total transaction of $52,965.00. Following the completion of the transaction, the director directly owned 23,779 shares of the company's stock, valued at approximately $2,518,909.47. The trade was a 2.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on SMTC. TD Cowen reissued a "buy" rating on shares of Semtech in a research report on Tuesday, February 24th. B. Riley Financial boosted their price objective on Semtech from $115.00 to $122.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Needham & Company LLC boosted their price objective on Semtech from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Benchmark boosted their price objective on Semtech from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, April 14th. Finally, Susquehanna boosted their price objective on Semtech from $90.00 to $100.00 and gave the stock a "positive" rating in a research report on Monday, March 9th. Fourteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $95.71.

Semtech Price Performance

The stock has a fifty day moving average of $87.26 and a 200-day moving average of $78.90. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $9.52 billion, a price-to-earnings ratio of -230.98 and a beta of 2.06.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Monday, March 16th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.01. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The firm had revenue of $274.40 million during the quarter, compared to the consensus estimate of $273.14 million. During the same period in the prior year, the company posted $0.40 earnings per share. The firm's quarterly revenue was up 9.3% compared to the same quarter last year. On average, equities research analysts predict that Semtech Corporation will post 1.6 EPS for the current fiscal year.

Institutional Investors Weigh In On Semtech

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. New York State Common Retirement Fund lifted its position in Semtech by 55.7% during the third quarter. New York State Common Retirement Fund now owns 277,661 shares of the semiconductor company's stock worth $19,839,000 after buying an additional 99,335 shares during the period. Nordea Investment Management AB raised its holdings in shares of Semtech by 24.4% in the 3rd quarter. Nordea Investment Management AB now owns 117,669 shares of the semiconductor company's stock worth $7,992,000 after purchasing an additional 23,086 shares during the period. Lisanti Capital Growth LLC purchased a new position in shares of Semtech in the 3rd quarter worth about $4,318,000. Allspring Global Investments Holdings LLC purchased a new position in shares of Semtech in the 3rd quarter worth about $9,160,000. Finally, Hodges Capital Management Inc. purchased a new position in shares of Semtech in the 3rd quarter worth about $4,624,000.

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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