Semtech's (SMTC) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company reaffirmed its “buy” rating on Semtech and maintained a $200 price target, implying about 46.9% upside from the current share price.
• Semtech also received a mix of analyst updates, but the broader consensus remains positive: MarketBeat shows an average rating of “Moderate Buy” with an average price target of $189.07.
• The company beat recent quarterly expectations, reporting $0.51 EPS versus $0.45 expected and $291.02 million in revenue, while revenue rose 15.9% year over year.

Semtech (NASDAQ:SMTC - Get Free Report)'s stock had its "buy" rating restated by Needham & Company LLC in a report issued on Monday,Benzinga reports. They presently have a $200.00 target price on the semiconductor company's stock. Needham & Company LLC's price target indicates a potential upside of 46.92% from the stock's current price.

A number of other brokerages have also issued reports on SMTC. Northland Securities lowered Semtech from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 26th. Oppenheimer set a $200.00 price target on shares of Semtech in a research note on Wednesday, May 27th. UBS Group upped their price target on shares of Semtech from $165.00 to $225.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Craig Hallum increased their price objective on shares of Semtech from $105.00 to $205.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Finally, Susquehanna raised their price objective on shares of Semtech from $170.00 to $200.00 and gave the stock a "positive" rating in a report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $189.07.

Semtech Stock Performance

Shares of SMTC stock opened at $136.13 on Monday. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. The company's fifty day moving average price is $147.85 and its two-hundred day moving average price is $106.72. The firm has a market capitalization of $12.68 billion, a P/E ratio of -349.05 and a beta of 2.31. Semtech has a 12 month low of $46.02 and a 12 month high of $177.35.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same period in the previous year, the company earned $0.38 earnings per share. The company's revenue for the quarter 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 anticipate that Semtech will post 1.81 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Asaf Silberstein sold 8,500 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the sale, the chief operating officer owned 96,862 shares of the company's stock, valued at $12,378,963.60. This represents a 8.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total transaction of $294,093.60. Following the sale, the executive vice president owned 8,611 shares in the company, valued at approximately $1,118,568.90. This trade represents a 20.82% 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 20,734 shares of company stock valued at $2,990,056 over the last quarter. 0.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Semtech

Institutional investors have recently made changes to their positions in the stock. Jones Financial Companies Lllp lifted its holdings in shares of Semtech by 12,214.3% in the 1st 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 last quarter. Empowered Funds LLC boosted its holdings in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after acquiring an additional 968 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Semtech by 5.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after acquiring an additional 22,629 shares during the period. Strs Ohio bought a new position in shares of Semtech during the first quarter worth about $65,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Semtech in the 2nd quarter worth about $226,000.

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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