Semtech (NASDAQ:SMTC) Shares Down 7.8% – Should You Sell?

Shares of Semtech Co. (NASDAQ:SMTC) dropped 7.8% during trading on Wednesday . The stock traded as low as $35.26 and last traded at $35.76. Approximately 1,002,326 shares traded hands during trading, a decline of 54% from the average daily volume of 2,158,662 shares. The stock had previously closed at $38.78.

Analyst Upgrades and Downgrades

SMTC has been the subject of several research reports. Morgan Stanley increased their price objective on shares of Semtech from $30.00 to $40.00 and gave the company an “equal weight” rating in a research report on Tuesday. UBS Group reduced their target price on shares of Semtech from $60.00 to $55.00 and set a “buy” rating on the stock in a research note on Monday, May 5th. Stifel Nicolaus increased their target price on shares of Semtech from $35.00 to $42.00 and gave the company a “buy” rating in a research note on Friday, May 23rd. Needham & Company LLC reissued a “buy” rating and issued a $54.00 target price on shares of Semtech in a research note on Wednesday. Finally, Piper Sandler reissued an “overweight” rating and issued a $55.00 target price (down previously from $75.00) on shares of Semtech in a research note on Monday, February 10th. Three analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $58.33.

Semtech Trading Down 6.3%

The firm has a market cap of $3.15 billion, a PE ratio of -2.79, a P/E/G ratio of 2.12 and a beta of 1.88. The business’s 50-day simple moving average is $33.09 and its 200 day simple moving average is $47.26.

Semtech (NASDAQ:SMTC) last posted its earnings results on Thursday, March 13th. The semiconductor company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.08. The business had revenue of $251.00 million for the quarter, compared to analysts’ expectations of $249.40 million. The company’s revenue for the quarter was up 30.1% on a year-over-year basis. During the same period last year, the business posted ($0.06) EPS. Analysts expect that Semtech Co. will post -0.02 earnings per share for the current year.

Insider Buying and Selling at Semtech

In other news, CFO Mark Lin sold 2,907 shares of the firm’s stock in a transaction dated Thursday, March 27th. The shares were sold at an average price of $37.71, for a total value of $109,622.97. Following the sale, the chief financial officer now directly owns 13,481 shares in the company, valued at approximately $508,368.51. This trade represents a 17.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.60% of the company’s stock.

Institutional Trading of Semtech

A number of institutional investors have recently modified their holdings of the company. Smartleaf Asset Management LLC boosted its holdings in shares of Semtech by 33.4% in the 1st quarter. Smartleaf Asset Management LLC now owns 1,027 shares of the semiconductor company’s stock valued at $36,000 after buying an additional 257 shares in the last quarter. Quadrant Capital Group LLC boosted its holdings in shares of Semtech by 27.4% in the 4th quarter. Quadrant Capital Group LLC now owns 1,567 shares of the semiconductor company’s stock valued at $97,000 after buying an additional 337 shares in the last quarter. Hollencrest Capital Management bought a new stake in shares of Semtech in the 4th quarter valued at about $31,000. Dunhill Financial LLC acquired a new stake in Semtech in the 4th quarter worth approximately $31,000. Finally, Versant Capital Management Inc boosted its stake in Semtech by 58.5% in the 1st quarter. Versant Capital Management Inc now owns 1,498 shares of the semiconductor company’s stock worth $52,000 after purchasing an additional 553 shares in the last quarter.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.