Traders Buy Large Volume of Put Options on Semtech (NASDAQ:SMTC)

Semtech Corporation (NASDAQ:SMTC) saw some unusual options trading on Friday. Traders acquired 6,027 put options on the company. This represents an increase of 51% compared to the typical daily volume of 3,981 put options.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SMTC. TD Cowen increased their price target on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. Roth Capital upped their target price on shares of Semtech from $102.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. Oppenheimer set a $200.00 price target on Semtech in a report on Wednesday, May 27th. Craig Hallum boosted their price target on Semtech from $105.00 to $205.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Finally, Mizuho set a $225.00 price objective on Semtech in a research note on Wednesday, May 27th. One investment 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 issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $189.07.

Insider Buying and Selling at Semtech

In related news, EVP Jason Elliot Green sold 2,264 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 8,611 shares of the company’s stock, valued at $1,118,568.90. This represents 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, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the transaction, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. 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 22,234 shares of company stock worth $3,203,091. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Vanguard Group Inc. lifted its position in shares of Semtech by 2.6% during the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company’s stock valued at $873,842,000 after acquiring an additional 298,987 shares during the period. Ameriprise Financial Inc. raised its holdings in Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after purchasing an additional 666,456 shares during the last quarter. State Street Corp boosted its position in Semtech by 1.5% during the second 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 in the last quarter. Whale Rock Capital Management LLC grew its holdings in Semtech by 11.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock valued at $287,499,000 after purchasing an additional 396,504 shares during the last quarter. Finally, Alliancebernstein L.P. grew its holdings in Semtech by 9.8% in the second quarter. Alliancebernstein L.P. now owns 3,318,384 shares of the semiconductor company’s stock valued at $149,792,000 after purchasing an additional 294,990 shares during the last quarter.

Semtech Price Performance

SMTC stock traded down $7.32 on Friday, reaching $131.37. 564,077 shares of the company’s stock were exchanged, compared to its average volume of 2,704,222. The stock has a fifty day moving average of $149.27 and a 200-day moving average of $110.41. The firm has a market cap of $12.24 billion, a PE ratio of -336.88 and a beta of 2.31. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. Semtech has a twelve month low of $46.02 and a twelve month high of $177.35.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The company had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same period in the previous year, the firm earned $0.38 EPS. The business’s revenue was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, equities analysts predict that Semtech will post 1.81 EPS for the current fiscal year.

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.