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

Semtech Corporation (NASDAQ:SMTC)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $161.85, but opened at $150.41. Semtech shares last traded at $151.4190, with a volume of 594,253 shares traded.

Analysts Set New Price Targets

Several brokerages have issued reports on SMTC. B. Riley Financial upped their price objective on Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Susquehanna lifted their target price on Semtech from $170.00 to $200.00 and gave the stock a “positive” rating in a research report on Wednesday, May 27th. Morgan Stanley upped their price target on Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 27th. Roth Mkm boosted their target price on shares of Semtech from $102.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Finally, Citigroup cut shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $189.07.

Semtech Price Performance

The firm has a market capitalization of $13.39 billion, a price-to-earnings ratio of -367.31 and a beta of 2.32. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The business has a 50-day moving average price of $142.59 and a two-hundred day moving average price of $103.18.

Semtech (NASDAQ:SMTC) last released its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million during the quarter, compared to analyst estimates of $283.53 million. During the same quarter in the previous year, the firm posted $0.38 EPS. The business’s revenue for the quarter was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, research analysts forecast that Semtech Corporation will post 1.81 EPS for the current year.

Insider Activity

In related news, insider John Michael Wilson sold 5,500 shares of Semtech 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 sale, the insider directly owned 80,876 shares in the company, valued at $13,748,920. This trade represents a 6.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Martin Burvill sold 2,500 shares of the business’s stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $88.98, for a total transaction of $222,450.00. Following the transaction, the director directly owned 4,409 shares of the company’s stock, valued at $392,312.82. The trade was a 36.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 13,500 shares of company stock worth $1,866,435 in the last 90 days. 0.48% of the stock is currently owned by insiders.

Institutional Trading of Semtech

Several hedge funds have recently added to or reduced their stakes in SMTC. Militia Capital Management LLC acquired a new position in shares of Semtech during the first quarter valued at $2,307,000. Glenmede Trust Co. NA lifted its holdings in Semtech by 3.3% in the first quarter. Glenmede Trust Co. NA now owns 18,432 shares of the semiconductor company’s stock worth $1,417,000 after purchasing an additional 589 shares during the period. E20 Capital Ltd bought a new position in Semtech in the 1st quarter valued at about $21,809,000. Janus Henderson Group PLC increased its stake in Semtech by 10.2% during the 1st quarter. Janus Henderson Group PLC now owns 61,443 shares of the semiconductor company’s stock valued at $4,723,000 after buying an additional 5,699 shares during the period. Finally, California State Teachers Retirement System increased its stake in Semtech by 24.8% during the 1st quarter. California State Teachers Retirement System now owns 102,818 shares of the semiconductor company’s stock valued at $7,906,000 after buying an additional 20,408 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.