Semtech (NASDAQ:SMTC) Shares Gap Down - Here's Why

Semtech Co. (NASDAQ:SMTC - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $73.02, but opened at $65.50. Semtech shares last traded at $59.37, with a volume of 1,542,880 shares.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Craig Hallum upped their price target on Semtech from $48.00 to $70.00 and gave the company a "buy" rating in a report on Tuesday, November 26th. Stifel Nicolaus increased their price target on Semtech from $65.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, January 6th. Needham & Company LLC boosted their price objective on Semtech from $70.00 to $74.00 and gave the stock a "buy" rating in a report on Thursday, December 12th. Northland Securities raised their target price on shares of Semtech from $60.00 to $66.00 and gave the stock an "outperform" rating in a report on Tuesday, December 10th. Finally, B. Riley boosted their price target on shares of Semtech from $61.00 to $85.00 and gave the company a "buy" rating in a report on Tuesday, November 26th. Three investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company's stock. According to data from MarketBeat.com, Semtech has a consensus rating of "Moderate Buy" and an average price target of $71.09.

Semtech Trading Down 21.5 %

The business's fifty day moving average price is $64.65 and its two-hundred day moving average price is $48.89. The firm has a market cap of $4.34 billion, a P/E ratio of -4.39 and a beta of 1.65.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Monday, November 25th. The semiconductor company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.03. Semtech had a negative return on equity of 154.99% and a negative net margin of 99.08%. The company had revenue of $236.80 million during the quarter, compared to analysts' expectations of $232.89 million. During the same quarter in the previous year, the firm earned $0.02 earnings per share. The business's quarterly revenue was up 17.9% compared to the same quarter last year.

Insider Activity

In other news, SVP Imran Sherazi sold 1,338 shares of Semtech stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $75.00, for a total value of $100,350.00. Following the transaction, the senior vice president now directly owns 14 shares in the company, valued at approximately $1,050. The trade was a 98.96 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Asaf Silberstein sold 2,000 shares of the stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $70.00, for a total value of $140,000.00. Following the sale, the chief operating officer now owns 76,417 shares of the company's stock, valued at approximately $5,349,190. The trade was a 2.55 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 13,757 shares of company stock valued at $917,305 over the last 90 days. 0.60% of the stock is currently owned by company insiders.

Institutional Trading of Semtech

A number of hedge funds have recently bought and sold shares of SMTC. State of Alaska Department of Revenue raised its position in shares of Semtech by 12.0% during the fourth quarter. State of Alaska Department of Revenue now owns 47,941 shares of the semiconductor company's stock valued at $2,965,000 after buying an additional 5,124 shares during the last quarter. WT Asset Management Ltd acquired a new position in Semtech in the 4th quarter valued at approximately $1,237,000. Yousif Capital Management LLC raised its holdings in Semtech by 11.2% in the 4th quarter. Yousif Capital Management LLC now owns 31,746 shares of the semiconductor company's stock valued at $1,963,000 after acquiring an additional 3,189 shares in the last quarter. Baader Bank Aktiengesellschaft acquired a new stake in shares of Semtech during the 4th quarter worth approximately $396,000. Finally, Moody Aldrich Partners LLC bought a new stake in shares of Semtech during the fourth quarter valued at approximately $3,483,000.

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.