Semtech (NASDAQ:SMTC) Stock Price Down 9.2% – Time to Sell?

Semtech Corporation (NASDAQ:SMTC)’s stock price dropped 9.2% during trading on Friday. The stock traded as low as $109.32 and last traded at $108.3970. 306,324 shares traded hands during trading, a decline of 89% from the average session volume of 2,904,876 shares. The stock had previously closed at $119.44.

Wall Street Analysts Forecast Growth

SMTC has been the subject of a number of recent research reports. BMO Capital Markets boosted their price target on shares of Semtech from $155.00 to $230.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 13th. Benchmark reaffirmed a “buy” rating on shares of Semtech in a report on Thursday, August 20th. Northland Securities upgraded shares of Semtech from a “market perform” rating to an “outperform” rating and set a $186.00 target price for the company in a research report on Friday, October 16th. Seaport Research Partners began coverage on Semtech in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $200.00 price target on the stock. Finally, Stifel Nicolaus reduced their price target on Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Semtech has an average rating of “Moderate Buy” and a consensus price target of $212.00.

Semtech Trading Down 5.9%

The company has a market capitalization of $10.49 billion, a P/E ratio of 74.54 and a beta of 2.50. The business has a 50 day moving average price of $154.04 and a 200 day moving average price of $126.31. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.10. The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. Semtech’s quarterly revenue was up 32.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts anticipate that Semtech Corporation will post 2.80 EPS for the current year.

Insider Buying and Selling

In other news, EVP Jason Elliot Green sold 2,766 shares of the business’s stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total value of $526,508.10. Following the completion of the transaction, the executive vice president owned 7,367 shares of the company’s stock, valued at $1,402,308.45. The trade was a 27.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 967 shares of the company’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $178.87, for a total transaction of $172,967.29. Following the completion of the sale, the chief financial officer owned 35,999 shares of the company’s stock, valued at approximately $6,439,141.13. This represents a 2.62% 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. In the last quarter, insiders sold 14,237 shares of company stock valued at $2,337,597. 0.44% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SMTC. Andar Capital Management HK Ltd acquired a new position in shares of Semtech in the 2nd quarter valued at approximately $162,000,000. BlackRock Inc. acquired a new stake in Semtech during the 2nd quarter worth approximately $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Semtech by 396.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after buying an additional 672,447 shares during the period. Jennison Associates LLC lifted its stake in Semtech by 15.6% in the first quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company’s stock valued at $57,235,000 after buying an additional 100,552 shares in the last quarter. Finally, Atreides Management LP bought a new position in Semtech in the second quarter valued at approximately $89,214,000.

About Semtech

Semtech Corporation is a semiconductor and connectivity technology company that develops products for communications, industrial, and consumer applications. Its portfolio includes analog and mixed-signal semiconductors, signal-integrity and protection products, and power-management solutions used in electronic systems. The company is known for LoRa technology, which supports low-power, long-range wireless communications for Internet of Things (IoT) devices. Semtech also provides cellular IoT modules, routers, and related services, expanding its connectivity offerings through its acquisition of Sierra Wireless in 2023.