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

Key Points

• Needham reaffirmed its “Buy” rating on Semtech and set a $200 price target, implying approximately 49.7% upside from the prior close. Other analysts also remain broadly positive, with the stock holding a “Moderate Buy” consensus rating and a $189.07 average target.
• Semtech exceeded quarterly expectations, reporting $0.51 in EPS versus a $0.45 consensus estimate and $291.02 million in revenue, up 15.9% year over year. Analysts expect the company to post $1.81 in EPS for the current fiscal year.
• Semtech shares opened at $133.58 and have traded between $46.02 and $177.35 over the past year. Company insiders sold 22,234 shares worth approximately $3.2 million over the last three months, while several major institutional investors increased their holdings.

Semtech (NASDAQ:SMTC - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at Needham & Company LLC in a report issued on Friday,Benzinga reports. They presently have a $200.00 target price on the semiconductor company's stock. Needham & Company LLC's price objective would suggest a potential upside of 49.72% from the company's previous close.

A number of other research analysts have also weighed in on SMTC. Benchmark boosted their target price on Semtech from $120.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Stifel Nicolaus increased their price objective on shares of Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. TD Cowen lifted their target price on shares of Semtech from $210.00 to $215.00 and gave the stock a "buy" rating in a report on Monday, June 22nd. Oppenheimer set a $200.00 price target on shares of Semtech in a report on Wednesday, May 27th. Finally, Susquehanna boosted their price objective on Semtech from $170.00 to $200.00 and gave the stock a "positive" 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 issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $189.07.

Semtech Price Performance

SMTC stock opened at $133.58 on Friday. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. Semtech has a 1 year low of $46.02 and a 1 year high of $177.35. The stock has a market cap of $12.44 billion, a PE ratio of -342.51 and a beta of 2.35. The stock has a 50-day moving average price of $140.83 and a two-hundred day moving average price of $115.46.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.06. The firm had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The company's revenue was up 15.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Equities analysts forecast that Semtech will post 1.81 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider John Michael Wilson sold 5,500 shares of the firm's 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 transaction, the insider directly owned 80,876 shares of the company's stock, valued at approximately $13,748,920. This trade represents a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction of $266,000.00. Following the completion of the sale, the chief executive officer owned 64,799 shares of the company's stock, valued at $8,618,267. This trade 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 sold a total of 22,234 shares of company stock valued at $3,203,091 in the last three months. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Semtech

A number of hedge funds have recently added to or reduced their stakes in the stock. Royce & Associates LP increased its position in Semtech by 144.5% during the 4th quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company's stock worth $7,930,000 after purchasing an additional 63,603 shares in the last quarter. Argos Wealth Advisors LLC bought a new stake in shares of Semtech during the fourth quarter worth about $640,000. Geode Capital Management LLC increased its stake in shares of Semtech by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company's stock valued at $154,704,000 after buying an additional 6,715 shares during the period. Strs Ohio boosted its position in Semtech by 558.9% during the 4th quarter. Strs Ohio now owns 48,100 shares of the semiconductor company's stock worth $3,544,000 after buying an additional 40,800 shares during the period. Finally, Vanguard Group Inc. increased its position in Semtech by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock valued at $873,842,000 after acquiring an additional 298,987 shares during the period.

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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