Semtech (NASDAQ:SMTC) Shares Gap Down After Insider Selling

Semtech Corporation (NASDAQ:SMTC) gapped down prior to trading on Friday following insider selling activity. The stock had previously closed at $137.50, but opened at $133.00. Semtech shares last traded at $135.3030, with a volume of 110,803 shares.

Specifically, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the completion of the sale, the executive vice president directly owned 8,611 shares of the company’s stock, valued at approximately $1,118,568.90. The trade was a 20.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total value of $145,897.70. Following the transaction, the chief financial officer directly owned 34,896 shares in the company, valued at approximately $5,248,707.36. The trade was a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Northland Securities downgraded Semtech from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 26th. Zacks Research raised shares of Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 29th. Oppenheimer set a $200.00 target price on shares of Semtech in a research note on Wednesday, May 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a report on Thursday, June 18th. Finally, Needham & Company LLC raised their price target on shares of Semtech from $105.00 to $200.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $189.07.

Semtech Stock Down 3.0%

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37. The company has a market cap of $12.42 billion, a price-to-earnings ratio of -342.54 and a beta of 2.31. The business has a 50-day simple moving average of $147.10 and a 200-day simple moving average of $106.29.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data 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. 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 during the quarter, compared to analysts’ expectations of $283.53 million. During the same quarter last year, the business posted $0.38 EPS. The business’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, equities analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Semtech by 2.6% during the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company’s stock worth $873,842,000 after acquiring an additional 298,987 shares in the last quarter. Ameriprise Financial Inc. raised 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 valued at $526,861,000 after purchasing an additional 261,647 shares in the last quarter. State Street Corp lifted its position in shares of Semtech by 1.5% during the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock worth $182,235,000 after purchasing an additional 60,788 shares during the last quarter. Whale Rock Capital Management LLC lifted its position in shares of Semtech by 11.3% during the 4th quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock worth $287,499,000 after purchasing an additional 396,504 shares during the last quarter. Finally, Alliancebernstein L.P. grew its stake in shares of Semtech by 8.7% during the third quarter. Alliancebernstein L.P. now owns 3,607,697 shares of the semiconductor company’s stock worth $257,770,000 after purchasing an additional 289,313 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.