Semtech (NASDAQ:SMTC) Reaches New 12-Month High – Still a Buy?

Semtech Corporation (NASDAQ:SMTC)’s share price hit a new 52-week high during trading on Thursday . The stock traded as high as $79.59 and last traded at $79.22, with a volume of 954342 shares trading hands. The stock had previously closed at $73.46.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on SMTC. UBS Group reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, November 25th. Roth Capital increased their price target on shares of Semtech from $65.00 to $77.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. Summit Insights upgraded shares of Semtech from a “hold” rating to a “buy” rating in a research note on Tuesday, November 25th. Wall Street Zen upgraded Semtech from a “buy” rating to a “strong-buy” rating in a report on Friday, November 28th. Finally, Stifel Nicolaus set a $80.00 price target on Semtech in a report on Wednesday, October 1st. Fifteen analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $76.71.

Semtech Stock Up 7.2%

The company has a market cap of $7.29 billion, a price-to-earnings ratio of 254.11 and a beta of 2.01. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.87. The business has a fifty day moving average of $68.81 and a two-hundred day moving average of $55.99.

Semtech (NASDAQ:SMTC) last issued its quarterly earnings results on Monday, November 24th. The semiconductor company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.45 by $0.03. The company had revenue of $266.97 million during the quarter, compared to analyst estimates of $266.36 million. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The firm’s revenue was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.26 EPS. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. As a group, equities analysts anticipate that Semtech Corporation will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Martin Burvill sold 3,500 shares of the company’s stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $62.75, for a total transaction of $219,625.00. Following the completion of the transaction, the director owned 6,909 shares in the company, valued at $433,539.75. This represents a 33.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark Lin sold 971 shares of Semtech stock in a transaction dated Friday, October 3rd. The stock was sold at an average price of $72.83, for a total value of $70,717.93. Following the completion of the sale, the chief financial officer owned 17,844 shares in the company, valued at approximately $1,299,578.52. The trade was a 5.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,971 shares of company stock worth $323,463 in the last 90 days. Insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Nordea Investment Management AB purchased a new stake in shares of Semtech during the second quarter worth $4,230,000. Deutsche Bank AG boosted its position in Semtech by 168.1% during the first quarter. Deutsche Bank AG now owns 1,210,078 shares of the semiconductor company’s stock worth $41,627,000 after acquiring an additional 758,642 shares during the last quarter. Wellington Management Group LLP grew its stake in Semtech by 7.9% during the 1st quarter. Wellington Management Group LLP now owns 2,313,213 shares of the semiconductor company’s stock valued at $79,575,000 after acquiring an additional 170,132 shares in the last quarter. EFG Asset Management North America Corp. raised its holdings in Semtech by 15.6% in the 2nd quarter. EFG Asset Management North America Corp. now owns 94,872 shares of the semiconductor company’s stock valued at $4,282,000 after acquiring an additional 12,796 shares during the last quarter. Finally, Paradigm Capital Management Inc. NY purchased a new position in Semtech in the 1st quarter worth approximately $6,591,000.

About Semtech

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.