Semtech (NASDAQ:SMTC) Shares Gap Up – Here’s Why

Semtech Corporation (NASDAQ:SMTC)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $132.15, but opened at $145.04. Semtech shares last traded at $141.3330, with a volume of 546,478 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Morgan Stanley boosted their price target on shares of Semtech from $155.00 to $175.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 27th. Oppenheimer set a $200.00 price objective on shares of Semtech in a report on Wednesday, May 27th. Northland Securities downgraded shares of Semtech from an “outperform” rating to a “market perform” rating in a research note on Tuesday, May 26th. Robert W. Baird increased their target price on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. Finally, Zacks Research upgraded Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $189.07.

Semtech Trading Up 5.2%

The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The business’s fifty day simple moving average is $148.40 and its two-hundred day simple moving average is $107.12. The company has a market cap of $12.95 billion, a price-to-earnings ratio of -357.15 and a beta of 2.31.

Semtech (NASDAQ:SMTC) last issued its earnings results 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. The business had revenue of $291.02 million during the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The company’s revenue for the quarter was up 15.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities analysts predict that Semtech Corporation will post 1.81 EPS for the current year.

Insider Buying and Selling

In other Semtech news, CFO Mark Lin sold 970 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction of $145,897.70. Following the transaction, the chief financial officer owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $170.00, for a total value of $935,000.00. Following the completion of the sale, the insider directly owned 80,876 shares of the company’s stock, valued at $13,748,920. The trade was a 6.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 20,734 shares of company stock valued at $2,990,056 over the last ninety days. Company insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On Semtech

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Semtech by 2.6% in 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. grew its position in Semtech by 3.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company’s stock worth $526,861,000 after purchasing an additional 261,647 shares during the last quarter. State Street Corp raised its holdings in shares of Semtech by 1.5% in the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock valued at $182,235,000 after buying an additional 60,788 shares during the last quarter. Whale Rock Capital Management LLC boosted its stake in shares of Semtech by 11.3% during the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock worth $287,499,000 after buying an additional 396,504 shares during the period. Finally, Alliancebernstein L.P. boosted 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 buying an additional 289,313 shares during the period.

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.