Semtech Target of Unusually High Options Trading (NASDAQ:SMTC)

Key Points

• Semtech saw unusually heavy options activity on Friday, with traders buying 6,027 put options, about 51% above its normal daily put volume.
• The stock fell to $131.37 that day, while the company recently posted better-than-expected quarterly results, including EPS of $0.51 on revenue of $291.02 million.
• Analysts remain broadly upbeat on SMTC, with several firms raising price targets to around $200+ and the consensus rating sitting at Moderate Buy.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) saw some unusual options trading on Friday. Traders purchased 6,027 put options on the stock. This represents an increase of approximately 51% compared to the typical daily volume of 3,981 put options.

Semtech Price Performance

Shares of NASDAQ SMTC traded down $7.32 during trading on Friday, hitting $131.37. The company had a trading volume of 564,077 shares, compared to its average volume of 2,704,222. Semtech has a fifty-two week low of $46.02 and a fifty-two week high of $177.35. The stock has a fifty day simple moving average of $149.27 and a two-hundred day simple moving average of $110.41. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The firm has a market capitalization of $12.24 billion, a price-to-earnings ratio of -336.88 and a beta of 2.31.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its 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 analysts' expectations of $283.53 million. During the same period in the prior year, the business earned $0.38 earnings per share. The company's quarterly revenue was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, research analysts expect that Semtech will post 1.81 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on SMTC shares. Susquehanna upped their target price on Semtech from $170.00 to $200.00 and gave the company a "positive" rating in a research report on Wednesday, May 27th. Oppenheimer set a $200.00 price objective on shares of Semtech in a report on Wednesday, May 27th. Needham & Company LLC reaffirmed a "buy" rating and issued a $200.00 price objective on shares of Semtech in a research report on Monday, July 13th. TD Cowen upped their price target on shares of Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Finally, Craig Hallum raised their price target on shares of Semtech from $105.00 to $205.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $189.07.

Insiders Place Their Bets

In other Semtech news, insider John Michael Wilson sold 5,500 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $170.00, for a total transaction of $935,000.00. Following the completion of the sale, the insider directly owned 80,876 shares of the company's stock, valued at approximately $13,748,920. This represents a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Hong Q. Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the sale, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 22,234 shares of company stock valued at $3,203,091 in the last three months. 0.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Semtech

Several institutional investors and hedge funds have recently modified their holdings of SMTC. Jones Financial Companies Lllp increased its stake in Semtech by 12,214.3% during the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after purchasing an additional 2,565 shares during the period. Empowered Funds LLC grew its holdings in shares of Semtech by 11.5% in the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after purchasing an additional 968 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Semtech by 5.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock worth $14,166,000 after buying an additional 22,629 shares in the last quarter. Strs Ohio purchased a new stake in shares of Semtech during the first quarter worth $65,000. Finally, Cetera Investment Advisers purchased a new position in Semtech in the second quarter valued at $226,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.