Semtech (NASDAQ:SMTC) Shares Down 5.3% – Here’s What Happened

Semtech Corporation (NASDAQ:SMTC)’s stock price fell 5.3% on Thursday . The company traded as low as $127.14 and last traded at $126.7980. Approximately 161,636 shares traded hands during trading, a decline of 94% from the average daily volume of 2,730,529 shares. The stock had previously closed at $133.85.

Wall Street Analyst Weigh In

SMTC has been the subject of several research reports. Susquehanna boosted their price objective on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research note on Wednesday, May 27th. Stifel Nicolaus increased their target price on Semtech from $157.00 to $188.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Mizuho set a $225.00 target price on Semtech in a report on Wednesday, May 27th. Benchmark reissued a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. Finally, B. Riley Financial upped their price target on Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Fifteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $204.71.

Semtech Stock Up 9.2%

The firm’s 50-day moving average price is $132.56 and its 200-day moving average price is $120.80. The company has a market cap of $13.80 billion, a price-to-earnings ratio of 97.93 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The business had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The business’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Sell-side analysts forecast that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Semtech news, EVP Jason Elliot Green sold 2,264 shares of the business’s 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 transaction, the executive vice president owned 8,611 shares in the company, valued at $1,118,568.90. The trade was a 20.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Wilson sold 5,500 shares of the company’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $170.00, for a total value of $935,000.00. Following the completion of the sale, the insider directly owned 80,876 shares of the company’s stock, valued at $13,748,920. The trade was a 6.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,734 shares of company stock valued at $2,809,786 over the last ninety days. Insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

A number of hedge funds have recently made changes to their positions in SMTC. FNY Investment Advisers LLC boosted its stake in shares of Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Semtech during the 2nd quarter valued at $32,000. Banque Cantonale Vaudoise purchased a new stake in Semtech during the 1st quarter worth $33,000. IFP Advisors Inc purchased a new stake in Semtech during the 4th quarter worth $53,000. Finally, Allworth Financial LP acquired a new position in Semtech in the 2nd quarter worth $55,000.

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.