Semtech (NASDAQ:SMTC) Shares Gap Down on Insider Selling

Key Points

• Semtech shares gapped down after insider sales, opening at $133.00 versus a prior close of $137.50 and trading as low as $135.30 early Friday.
• Executive Vice President Jason Elliot Green sold 2,264 shares and CFO Mark Lin sold 970 shares, with both transactions made under pre-arranged Rule 10b5-1 plans.
• Despite the insider selling, Wall Street remains broadly bullish on Semtech, with a Moderate Buy consensus and an average price target of $189.07 after several analysts raised their targets.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $137.50, but opened at $133.00. Semtech shares last traded at $135.3030, with a volume of 110,803 shares.

Specifically, EVP Jason Elliot Green sold 2,264 shares of the firm's stock in a transaction that occurred 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 of the company's stock, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the completion of the sale, the chief financial officer owned 34,896 shares of the company's stock, valued at $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on SMTC shares. Craig Hallum lifted their price target on shares of Semtech from $105.00 to $205.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. UBS Group upped their price objective on shares of Semtech from $165.00 to $225.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. TD Cowen lifted their target price on shares of Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. Finally, Morgan Stanley boosted their target price on shares of Semtech from $155.00 to $175.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $189.07.

Semtech Price Performance

The company has a 50-day moving average of $147.10 and a 200 day moving average of $106.29. 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 stock has a market capitalization of $12.42 billion, a PE ratio of -342.54 and a beta of 2.31.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates 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 company had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same quarter last year, the firm posted $0.38 EPS. The firm's revenue for the quarter 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 predict that Semtech Corporation will post 1.81 EPS for the current year.

Institutional Investors Weigh In On Semtech

A number of large investors have recently made changes to their positions in the stock. Leonteq Securities AG lifted its position in Semtech by 11.2% in the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company's stock valued at $90,000 after buying an additional 118 shares during the last quarter. Evergreen Capital Management LLC lifted its holdings in shares of Semtech by 2.3% in the 4th quarter. Evergreen Capital Management LLC now owns 5,945 shares of the semiconductor company's stock worth $438,000 after acquiring an additional 136 shares during the last quarter. Stephens Inc. AR boosted its position in shares of Semtech by 3.3% during the 4th quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company's stock worth $325,000 after purchasing an additional 142 shares during the period. Captrust Financial Advisors increased its holdings in Semtech by 0.8% in the 4th quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company's stock valued at $1,422,000 after purchasing an additional 162 shares during the last quarter. Finally, Cetera Investment Advisers increased its holdings in Semtech by 1.5% in the 4th quarter. Cetera Investment Advisers now owns 11,737 shares of the semiconductor company's stock valued at $865,000 after purchasing an additional 177 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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