Semtech (NASDAQ:SMTC) Stock Jumps 4.9% – Should You Buy?

Semtech Corporation (NASDAQ:SMTC)’s share price traded up 4.9% during trading on Tuesday. The company traded as high as $176.00 and last traded at $176.4550. Approximately 760,459 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 2,819,530 shares. The stock had previously closed at $168.28.

Wall Street Analysts Forecast Growth

SMTC has been the subject of several research reports. New Street Research set a $230.00 price target on shares of Semtech in a research report on Thursday, August 20th. Stifel Nicolaus raised their price objective on shares of Semtech from $188.00 to $220.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. UBS Group lifted their price objective on shares of Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, August 26th. Zacks Research upgraded shares of Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Finally, TD Cowen upped their target price on shares of Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $212.47.

Semtech Trading Down 7.2%

The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The company’s fifty day moving average price is $156.83 and its two-hundred day moving average price is $138.72. The firm has a market cap of $14.96 billion, a PE ratio of 106.13 and a beta of 2.41.

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

Insiders Place Their Bets

In related news, CEO Hong Q. Hou sold 2,000 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the transaction, the chief executive officer owned 60,799 shares of the company’s stock, valued at $8,433,429.29. This represents a 3.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 967 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total value of $172,967.29. Following the completion of the transaction, the chief financial officer owned 35,999 shares of the company’s stock, valued at $6,439,141.13. The trade was a 2.62% 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. Over the last ninety days, insiders sold 13,737 shares of company stock worth $2,267,877. Corporate insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Semtech

Institutional investors have recently made changes to their positions in the stock. Andar Capital Management HK Ltd purchased a new position in Semtech during the second quarter worth $162,000,000. BlackRock Inc. acquired a new stake in shares of Semtech during the second quarter valued at $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Semtech by 396.3% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock valued at $136,298,000 after acquiring an additional 672,447 shares during the last quarter. Assenagon Asset Management S.A. increased its position in Semtech by 323.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock worth $60,051,000 after purchasing an additional 596,373 shares in the last quarter. Finally, Atreides Management LP purchased a new stake in Semtech during the 2nd quarter worth about $89,214,000.

About Semtech

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.