Semtech (NASDAQ:SMTC) Trading Down 7% - What's Next?

Key Points

• Semtech shares fell 7% to about $117.13, with trading volume reaching only 12% of the stock’s average session volume.
• Wall Street remains generally positive, with an average “Moderate Buy” rating and a $189.07 price target, although one analyst recently downgraded the stock to “Market Perform.”
• Semtech exceeded quarterly earnings and revenue expectations, reporting $0.51 EPS and $291.02 million in revenue, while revenue rose 15.9% year over year. Insiders have sold $3.2 million of shares over the past 90 days, under pre-arranged trading plans.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s share price dropped 7% during trading on Monday . The stock traded as low as $118.78 and last traded at $117.1260. 324,640 shares were traded during trading, a decline of 88% from the average session volume of 2,692,834 shares. The stock had previously closed at $125.92.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Zacks Research upgraded Semtech from a "hold" rating to a "strong-buy" rating in a report on Monday, June 29th. Stifel Nicolaus increased their price target on Semtech from $157.00 to $188.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Northland Securities downgraded shares of Semtech from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 26th. TD Cowen boosted 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, UBS Group increased their target price on shares of Semtech from $165.00 to $225.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Semtech currently has an average rating of "Moderate Buy" and an average target price of $189.07.

Semtech Trading Down 5.2%

The business has a fifty day moving average of $149.03 and a 200-day moving average of $110.78. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37. The company has a market capitalization of $11.12 billion, a P/E ratio of -306.21 and a beta of 2.31.

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

Insider Buying and Selling

In other news, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the completion of the sale, the chief executive officer directly owned 64,799 shares of the company's stock, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the firm's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total value of $1,086,300.00. Following the completion of the transaction, the chief operating officer owned 96,862 shares in the company, valued at $12,378,963.60. This represents a 8.07% 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 a total of 22,234 shares of company stock worth $3,203,091 over the last ninety days. Insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Semtech

A number of institutional investors and hedge funds have recently bought and sold shares of SMTC. Handelsbanken Fonder AB grew its stake in shares of Semtech by 20.3% in the 2nd quarter. Handelsbanken Fonder AB now owns 31,988 shares of the semiconductor company's stock worth $5,177,000 after acquiring an additional 5,400 shares in the last quarter. Allied Private Wealth LLC bought a new position in shares of Semtech during the second quarter valued at about $65,000. Everhart Financial Group Inc. purchased a new position in Semtech during the second quarter worth about $202,000. Hennion & Walsh Asset Management Inc. bought a new stake in Semtech in the 2nd quarter worth about $673,000. Finally, FNY Investment Advisers LLC grew its position in Semtech by 900.0% in the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock worth $32,000 after purchasing an additional 180 shares in the last quarter.

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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