Semtech (NASDAQ:SMTC) Stock Jumps 7.4% – Time to Buy?

Semtech Corporation (NASDAQ:SMTC) rose 7.4% on Friday. The stock traded as high as $132.06 and last traded at $134.3190. Approximately 664,928 shares were traded during trading, a decline of 77% from the average session volume of 2,875,487 shares. The stock had previously closed at $125.12.

Analyst Ratings Changes

A number of equities analysts have recently commented on SMTC shares. Northland Securities upgraded Semtech from a “market perform” rating to an “outperform” rating and set a $186.00 price objective on the stock in a research note on Friday, October 16th. UBS Group upped their price target on Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a report on Wednesday, August 26th. Weiss Ratings upgraded Semtech from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday. Zacks Research upgraded Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Finally, Benchmark reaffirmed a “buy” rating on shares of Semtech in a report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $213.11.

Semtech Price Performance

The company’s fifty day moving average price is $157.15 and its two-hundred day moving average price is $141.26. The company has a market cap of $12.41 billion, a price-to-earnings ratio of 88.15 and a beta of 2.41. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10. The firm 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%. The company’s revenue was up 32.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities research analysts forecast that Semtech Corporation will post 2.80 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Hong Hou sold 2,000 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the completion of the transaction, the chief executive officer owned 60,799 shares of the company’s stock, valued at approximately $8,433,429.29. The trade was a 3.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of the firm’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $145.00, for a total value of $217,500.00. Following the sale, the director directly owned 7,140 shares in the company, valued at approximately $1,035,300. This trade represents a 17.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 13,737 shares of company stock worth $2,267,877. 0.44% of the stock is owned by company insiders.

Hedge Funds Weigh In On Semtech

A number of institutional investors have recently modified their holdings of the company. Andar Capital Management HK Ltd acquired a new position in shares of Semtech during the second quarter valued at about $162,000,000. BlackRock Inc. bought a new stake in Semtech during the second quarter worth $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Semtech by 396.3% in 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 acquiring an additional 672,447 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in shares of Semtech by 323.0% during the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after purchasing an additional 596,373 shares in the last quarter. Finally, Jennison Associates LLC boosted its holdings in Semtech by 15.6% during the first quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company’s stock worth $57,235,000 after purchasing an additional 100,552 shares during the last quarter.

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company’s products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.