Semtech (NASDAQ:SMTC) Trading Up 12.1% - Here's What Happened

Key Points

• Semtech shares jumped 12.1% to about $135.90 in midday trading, with roughly 1.83 million shares changing hands.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $189.07; several firms recently raised their targets to between $175 and $215.
• Recent quarterly results exceeded expectations, with EPS of $0.51 versus $0.45 expected and revenue of $291.02 million, up 15.9% year over year. Insiders have nevertheless sold 22,234 shares worth approximately $3.2 million over the past quarter under pre-arranged trading plans.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) shot up 12.1% during mid-day trading on Thursday . The stock traded as high as $137.15 and last traded at $135.9040. 1,831,613 shares changed hands during trading, a decline of 32% from the average daily volume of 2,679,306 shares. The stock had previously closed at $121.25.

Analyst Ratings Changes

A number of research firms recently weighed in on SMTC. TD Cowen lifted their price target on Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. 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 report on Wednesday, May 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. Craig Hallum upped their target price on shares of Semtech from $105.00 to $205.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Finally, B. Riley Financial increased their target price on shares of Semtech from $165.00 to $210.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Semtech has a consensus rating of "Moderate Buy" and a consensus price target of $189.07.

Semtech Stock Up 12.0%

The firm has a market capitalization of $12.65 billion, a PE ratio of -349.26 and a beta of 2.35. The firm's 50-day moving average is $143.98 and its 200 day moving average is $113.08. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.06. The firm 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 firm's revenue for the quarter was up 15.9% on a year-over-year basis. During the same period last year, the firm posted $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, research analysts forecast that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Transactions at Semtech

In related news, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the sale, the chief operating officer owned 96,862 shares of the company's stock, valued at $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of Semtech stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the sale, the chief executive officer owned 64,799 shares of the company's stock, valued at approximately $8,618,267. This represents a 2.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 22,234 shares of company stock worth $3,203,091 in the last quarter. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Semtech

A number of institutional investors have recently modified their holdings of SMTC. Andar Capital Management HK Ltd purchased a new position in shares of Semtech during the 2nd quarter worth $162,000,000. Vanguard Group Inc. boosted its position in Semtech by 2.6% during the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock worth $873,842,000 after purchasing an additional 298,987 shares during the period. Ameriprise Financial Inc. grew its stake in shares of Semtech by 10.3% in the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock valued at $321,040,000 after buying an additional 666,456 shares in the last quarter. State Street Corp boosted its holdings in Semtech by 1.5% in the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock worth $182,235,000 after acquiring an additional 60,788 shares during the period. Finally, Whale Rock Capital Management LLC grew its position in Semtech by 11.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company's stock valued at $287,499,000 after acquiring an additional 396,504 shares in 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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