Semtech (NASDAQ:SMTC) Hits New 52-Week High – Should You Buy?

Shares of Semtech Corporation (NASDAQ:SMTC) reached a new 52-week high on Tuesday . The stock traded as high as $81.39 and last traded at $78.86, with a volume of 101197 shares traded. The stock had previously closed at $79.68.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on SMTC shares. UBS Group restated a “buy” rating on shares of Semtech in a research report on Tuesday, November 25th. B. Riley boosted their price objective on Semtech from $90.00 to $91.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. Benchmark boosted their price target on shares of Semtech from $76.00 to $85.00 and gave the stock a “buy” rating in a research note on Tuesday, November 25th. Summit Insights raised Semtech from a “hold” rating to a “buy” rating in a research note on Tuesday, November 25th. Finally, Robert W. Baird lifted their price objective on Semtech from $70.00 to $88.00 and gave the stock an “outperform” rating in a report on Tuesday, November 25th. Fifteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Semtech presently has an average rating of “Moderate Buy” and an average price target of $78.50.

Semtech Trading Up 4.2%

The company has a market cap of $7.15 billion, a P/E ratio of 249.23 and a beta of 2.01. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.87. The stock’s 50 day moving average is $73.15 and its 200-day moving average is $63.42.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Monday, November 24th. The semiconductor company reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.03. The firm had revenue of $266.97 million for the quarter, compared to the consensus estimate of $266.36 million. Semtech had a return on equity of 17.00% and a net margin of 2.77%.The company’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.26 earnings per share. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. Research analysts anticipate that Semtech Corporation will post -0.02 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Gregory Michael Fischer sold 1,034 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $75.50, for a total transaction of $78,067.00. Following the completion of the sale, the director directly owned 2,857 shares in the company, valued at approximately $215,703.50. The trade was a 26.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Mark Lin sold 1,333 shares of the company’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $76.20, for a total value of $101,574.60. Following the completion of the sale, the chief financial officer owned 18,477 shares of the company’s stock, valued at $1,407,947.40. This trade represents a 6.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 11,967 shares of company stock worth $895,103. Company insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On Semtech

Several institutional investors have recently made changes to their positions in SMTC. Ameriprise Financial Inc. lifted its holdings in shares of Semtech by 3.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company’s stock worth $526,861,000 after buying an additional 261,647 shares during the period. Capital Research Global Investors lifted its position in Semtech by 13.9% during the 3rd quarter. Capital Research Global Investors now owns 4,691,676 shares of the semiconductor company’s stock worth $335,220,000 after acquiring an additional 571,372 shares during the period. State Street Corp lifted its stake in Semtech by 1.5% during the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock valued at $182,235,000 after acquiring an additional 60,788 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Semtech by 8.7% in the third quarter. Alliancebernstein L.P. now owns 3,607,697 shares of the semiconductor company’s stock worth $257,770,000 after buying an additional 289,313 shares during the last quarter. Finally, Westfield Capital Management Co. LP boosted its holdings in Semtech by 23.0% during the third quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company’s stock worth $241,528,000 after buying an additional 633,113 shares in the last quarter.

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.