Semtech (NASDAQ:SMTC) Stock Price Down 7.1% - What's Next?

Key Points

• Semtech Corporation's stock price dropped 7.1% on Thursday, closing at $49.48, significantly lower than the previous close of $53.24.
• Analysts maintain an overall positive outlook with two analysts rating the stock as "hold" and eleven as "buy," with a consensus target price of $59.58.
• Insider trading showed recent sales by COO and CFO, indicating a decrease in their holdings, with insiders collectively owning only 0.48% of the stock.

Semtech Corporation (NASDAQ:SMTC - Get Free Report)'s stock price fell 7.1% on Thursday . The stock traded as low as $50.45 and last traded at $49.48. 95,886 shares were traded during trading, a decline of 96% from the average session volume of 2,415,481 shares. The stock had previously closed at $53.24.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Benchmark reissued a "buy" rating and issued a $68.00 target price on shares of Semtech in a research report on Wednesday, May 28th. Stifel Nicolaus upped their price objective on Semtech from $45.00 to $54.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. UBS Group dropped their price target on Semtech from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Monday, May 5th. Needham & Company LLC reiterated a "buy" rating and set a $54.00 price objective on shares of Semtech in a research report on Wednesday, May 28th. Finally, Morgan Stanley set a $43.00 price objective on Semtech in a research report on Wednesday, May 28th. Two investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $59.58.

Semtech Stock Down 1.4%

The stock has a 50 day moving average price of $47.43 and a 200 day moving average price of $40.53. The stock has a market capitalization of $4.32 billion, a price-to-earnings ratio of -24.19 and a beta of 1.94. The company has a quick ratio of 1.81, a current ratio of 2.53 and a debt-to-equity ratio of 0.95.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 27th. The semiconductor company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.10. Semtech had a positive return on equity of 19.66% and a negative net margin of 12.52%. The firm had revenue of $251.10 million for the quarter, compared to analyst estimates of $249.79 million. During the same period last year, the firm posted $0.06 earnings per share. The business's revenue for the quarter was up 21.8% on a year-over-year basis. As a group, analysts forecast that Semtech Corporation will post -0.02 EPS for the current year.

Insider Transactions at Semtech

In other news, COO Asaf Silberstein sold 2,000 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $42.98, for a total transaction of $85,960.00. Following the completion of the transaction, the chief operating officer directly owned 105,996 shares in the company, valued at $4,555,708.08. This trade represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Lin sold 999 shares of Semtech stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $43.84, for a total value of $43,796.16. Following the completion of the sale, the chief financial officer owned 17,211 shares of the company's stock, valued at approximately $754,530.24. The trade was a 5.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Semtech

A number of hedge funds have recently added to or reduced their stakes in SMTC. LPL Financial LLC increased its holdings in shares of Semtech by 18.3% during the fourth quarter. LPL Financial LLC now owns 19,154 shares of the semiconductor company's stock valued at $1,185,000 after acquiring an additional 2,965 shares in the last quarter. Envestnet Asset Management Inc. increased its holdings in shares of Semtech by 65.0% during the fourth quarter. Envestnet Asset Management Inc. now owns 86,282 shares of the semiconductor company's stock valued at $5,337,000 after acquiring an additional 33,980 shares in the last quarter. Raymond James Financial Inc. bought a new stake in shares of Semtech during the fourth quarter valued at approximately $360,000. Summit Investment Advisors Inc. increased its holdings in shares of Semtech by 19.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 7,601 shares of the semiconductor company's stock valued at $470,000 after acquiring an additional 1,244 shares in the last quarter. Finally, Mariner LLC boosted its position in shares of Semtech by 3.3% during the fourth quarter. Mariner LLC now owns 18,136 shares of the semiconductor company's stock valued at $1,122,000 after buying an additional 582 shares during the last quarter.

About Semtech

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.