Semtech Sees Unusually Large Options Volume (NASDAQ:SMTC)

Key Points

• Semtech saw unusually heavy options activity on Thursday, with traders buying 3,996 call options — about 79% above the stock’s typical daily volume.
• Insiders recently sold shares, including Director Paul V. Walsh, Jr. and CFO Mark Lin, while insiders have sold 36,384 shares over the last 90 days.
• The stock has been rallying sharply, rising to $145.34 and nearing its 52-week high of $149.52, as analysts maintain a generally bullish outlook with a consensus target price of $110.64.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) saw some unusual options trading activity on Thursday. Traders bought 3,996 call options on the stock. This is an increase of 79% compared to the typical daily volume of 2,237 call options.

Insider Buying and Selling

In other Semtech news, Director Paul V. Walsh, Jr. sold 500 shares of Semtech stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $105.93, for a total transaction of $52,965.00. Following the completion of the transaction, the director owned 23,779 shares in the company, valued at approximately $2,518,909.47. This trade represents a 2.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 974 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $78.42, for a total value of $76,381.08. Following the completion of the transaction, the chief financial officer directly owned 33,343 shares of the company's stock, valued at approximately $2,614,758.06. This trade represents a 2.84% 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 sold 36,384 shares of company stock valued at $3,000,140 in the last 90 days. 0.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Semtech

Large investors have recently made changes to their positions in the stock. Banque Cantonale Vaudoise acquired a new stake in shares of Semtech during the 1st quarter worth approximately $33,000. Hantz Financial Services Inc. increased its holdings in Semtech by 243.2% in the 3rd quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 360 shares during the last quarter. AlphaQuest LLC raised its holdings in shares of Semtech by 42.5% in the 3rd quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company's stock valued at $41,000 after buying an additional 173 shares during the period. Jones Financial Companies Lllp increased its stake in Semtech by 65.5% during the third quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 235 shares during the period. Finally, Assetmark Inc. lifted its holdings in Semtech by 1,745.5% during the 3rd quarter. Assetmark Inc. now owns 609 shares of the semiconductor company's stock worth $44,000 after buying an additional 576 shares in the last quarter.

Semtech Price Performance

SMTC traded up $3.49 during midday trading on Thursday, hitting $145.34. 780,799 shares of the company traded hands, compared to its average volume of 2,126,869. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $13.53 billion, a price-to-earnings ratio of -330.78 and a beta of 2.22. Semtech has a 52-week low of $34.59 and a 52-week high of $149.52. The business has a 50 day simple moving average of $98.39 and a two-hundred day simple moving average of $85.06.

Semtech (NASDAQ:SMTC - Get Free Report) last released its earnings results on Monday, March 16th. The semiconductor company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.01. Semtech had a negative net margin of 3.86% and a positive return on equity of 18.09%. The business had revenue of $274.40 million during the quarter, compared to analysts' expectations of $273.14 million. During the same quarter in the previous year, the company earned $0.40 earnings per share. The company's quarterly revenue was up 9.3% on a year-over-year basis. On average, equities analysts forecast that Semtech will post 1.6 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have commented on SMTC shares. Benchmark upped their price objective on Semtech from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, April 14th. TD Cowen reiterated a "buy" rating on shares of Semtech in a research note on Tuesday, February 24th. Oppenheimer raised their price target on shares of Semtech from $100.00 to $110.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. Craig Hallum lifted their price objective on shares of Semtech from $80.00 to $105.00 and gave the company a "buy" rating in a report on Tuesday, March 17th. Finally, Needham & Company LLC upped their price objective on shares of Semtech from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Fourteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $110.64.

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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