Semtech (NASDAQ:SMTC) Stock Price Up 8% - Still a Buy?

Key Points

• Semtech shares jumped 8% on Monday, reaching an intraday high of $171.33 after closing at $158.23 in the previous session.
• Wall Street sentiment remains bullish, with multiple analysts raising price targets; the stock now carries an average rating of “Moderate Buy” and an average price target of $189.07.
• Semtech’s latest earnings beat expectations, posting $0.51 EPS versus the $0.45 consensus and revenue of $291.02 million, up 15.9% year over year.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) were up 8% on Monday . The company traded as high as $171.33 and last traded at $170.9640. Approximately 837,056 shares traded hands during trading, a decline of 67% from the average daily volume of 2,549,990 shares. The stock had previously closed at $158.23.

Wall Street Analyst Weigh In

SMTC has been the subject of several recent research reports. Stifel Nicolaus increased their price objective on shares of Semtech from $157.00 to $188.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. TD Cowen upped their price target on shares of Semtech from $210.00 to $215.00 and gave the stock a "buy" rating in a research report on Monday. Needham & Company LLC increased their price target on Semtech from $105.00 to $200.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. B. Riley Financial raised their price objective on Semtech from $165.00 to $210.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Finally, Northland Securities downgraded Semtech from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 26th. Thirteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Semtech has an average rating of "Moderate Buy" and an average price target of $189.07.

Semtech Stock Performance

The company has a market capitalization of $16.30 billion, a price-to-earnings ratio of -448.71 and a beta of 2.32. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The stock has a 50-day simple moving average of $133.24 and a 200-day simple moving average of $99.08.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. The business had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The business's quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Martin Burvill sold 2,500 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were 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 in the company, valued at approximately $392,312.82. This represents a 36.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Jason Elliot Green sold 7,500 shares of Semtech stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $81.73, for a total value of $612,975.00. Following the completion of the transaction, the executive vice president owned 8,811 shares of the company's stock, valued at $720,123.03. This trade represents a 45.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 25,160 shares of company stock worth $2,227,705. 0.48% of the stock is currently owned by insiders.

Institutional Trading of Semtech

Institutional investors and hedge funds have recently modified their holdings of the business. Leonteq Securities AG raised its stake in Semtech by 11.2% during the 1st quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company's stock valued at $90,000 after acquiring an additional 118 shares in the last quarter. Evergreen Capital Management LLC boosted its position in Semtech by 2.3% during 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 period. Stephens Inc. AR grew its stake in shares of Semtech by 3.3% in the fourth quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company's stock worth $325,000 after purchasing an additional 142 shares in the last quarter. Journey Strategic Wealth LLC increased its holdings in shares of Semtech by 3.2% during the third quarter. Journey Strategic Wealth LLC now owns 5,074 shares of the semiconductor company's stock valued at $363,000 after purchasing an additional 159 shares during the period. Finally, Captrust Financial Advisors increased its holdings in shares of Semtech by 0.8% during the fourth 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 period.

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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