Semtech (NASDAQ:SMTC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Semtech continues to be impacted by mounting competition in the semiconductor space. The resultant pricing pressure continues to impact the company’s margins and profitability. Moreover, the seasonality in the consumer segment is a matter of concern. Also, risk of foreign exchange fluctuations is a headwind. However, the company reported strong fiscal third quarter results. The growth drivers for the company were product differentiation, operational flexibility and a specific focus on fast-growing segments and regions. Further, Semtech's strong performance in the industrial and communications markets continues to drive its top-line growth. Notably, shares of Semtech have outperformed the industry it belongs to on a year-to-date basis.”
Several other equities research analysts also recently weighed in on the stock. Roth Capital set a $63.00 target price on shares of Semtech and gave the stock a “buy” rating in a research note on Monday, October 8th. ValuEngine upgraded shares of Semtech from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, September 12th. Needham & Company LLC increased their target price on shares of Semtech from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, August 30th. Piper Jaffray Companies increased their target price on shares of Semtech from $57.00 to $63.00 and gave the stock an “overweight” rating in a research note on Monday, September 10th. Finally, BidaskClub upgraded shares of Semtech from a “sell” rating to a “hold” rating in a research note on Friday, September 7th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and an average price target of $60.40.
Semtech (NASDAQ:SMTC) last announced its earnings results on Wednesday, November 28th. The semiconductor company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.02. Semtech had a net margin of 7.97% and a return on equity of 14.23%. The business had revenue of $173.60 million during the quarter, compared to the consensus estimate of $173.06 million. During the same quarter in the prior year, the firm earned $0.54 earnings per share. The business’s quarterly revenue was up 15.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Semtech will post 1.56 EPS for the current fiscal year.
In related news, SVP James Jungsup Kim sold 8,617 shares of the firm’s stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $60.00, for a total value of $517,020.00. Following the completion of the sale, the senior vice president now owns 54,842 shares in the company, valued at $3,290,520. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Mark C. Costello sold 1,063 shares of the firm’s stock in a transaction dated Thursday, September 6th. The shares were sold at an average price of $58.27, for a total transaction of $61,941.01. Following the completion of the sale, the vice president now owns 6,813 shares of the company’s stock, valued at approximately $396,993.51. The disclosure for this sale can be found here. In the last 90 days, insiders sold 81,058 shares of company stock valued at $4,352,513. 2.30% of the stock is owned by insiders.
A number of large investors have recently made changes to their positions in SMTC. Bank of Montreal Can acquired a new stake in Semtech in the second quarter valued at about $124,000. Meeder Asset Management Inc. acquired a new stake in Semtech in the third quarter valued at about $155,000. NumerixS Investment Technologies Inc acquired a new stake in Semtech in the second quarter valued at about $160,000. Glenmede Trust Co. NA lifted its position in Semtech by 237.0% in the third quarter. Glenmede Trust Co. NA now owns 3,822 shares of the semiconductor company’s stock valued at $211,000 after purchasing an additional 2,688 shares during the period. Finally, HPM Partners LLC acquired a new stake in Semtech in the third quarter valued at about $214,000. Hedge funds and other institutional investors own 98.97% of the company’s stock.
Semtech Company Profile
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, communications, and high-end consumer applications; and a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications.
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