Semtech (NASDAQ:SMTC) Shares Gap Up – What’s Next?

Semtech Corporation (NASDAQ:SMTC)’s share price gapped up prior to trading on Monday . The stock had previously closed at $72.16, but opened at $78.02. Semtech shares last traded at $73.6340, with a volume of 926,170 shares traded.

Analyst Ratings Changes

A number of research firms recently issued reports on SMTC. Craig Hallum boosted their price objective on Semtech from $80.00 to $105.00 and gave the company a “buy” rating in a research note on Tuesday, March 17th. TD Cowen restated a “buy” rating on shares of Semtech in a research note on Tuesday, February 24th. Piper Sandler reaffirmed an “overweight” rating and set a $95.00 target price (up from $70.00) on shares of Semtech in a report on Thursday, December 11th. Susquehanna upped their price target on Semtech from $90.00 to $100.00 and gave the company a “positive” rating in a research report on Monday, March 9th. Finally, Morgan Stanley increased their price target on shares of Semtech from $75.00 to $85.00 and gave the stock an “equal weight” rating in a report on Monday, March 16th. Fourteen research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $93.14.

Semtech Stock Up 8.9%

The company has a market cap of $7.15 billion, a PE ratio of -174.75 and a beta of 1.99. The stock has a 50-day moving average of $83.78 and a 200-day moving average of $75.32. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89.

Semtech (NASDAQ:SMTC) last announced its earnings results on Monday, March 16th. The semiconductor company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The business had revenue of $274.40 million for the quarter, compared to analyst estimates of $273.14 million. During the same period in the prior year, the company earned $0.40 EPS. The company’s quarterly revenue was up 9.3% compared to the same quarter last year. Sell-side analysts predict that Semtech Corporation will post -0.02 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Semtech news, insider John Michael Wilson sold 5,000 shares of the business’s stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $75.12, for a total value of $375,600.00. Following the completion of the transaction, the insider owned 60,066 shares of the company’s stock, valued at $4,512,157.92. The trade was a 7.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark Lin sold 9,186 shares of the stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $75.05, for a total transaction of $689,409.30. Following the completion of the transaction, the chief financial officer directly owned 32,710 shares in the company, valued at $2,454,885.50. The trade was a 21.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 49,377 shares of company stock valued at $4,055,452 in the last 90 days. 0.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SMTC. Hantz Financial Services Inc. raised its position in Semtech by 243.2% during the third quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company’s stock valued at $36,000 after purchasing an additional 360 shares in the last quarter. Salomon & Ludwin LLC purchased a new position in shares of Semtech in the 3rd quarter worth about $41,000. AlphaQuest LLC increased its position in shares of Semtech by 42.5% during the 3rd quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company’s stock valued at $41,000 after purchasing an additional 173 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of Semtech by 65.5% during the 3rd quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 235 shares during the last quarter. Finally, Assetmark Inc. raised its holdings in shares of Semtech by 1,745.5% during the 3rd quarter. Assetmark Inc. now owns 609 shares of the semiconductor company’s stock valued at $44,000 after buying an additional 576 shares in the last quarter.

About Semtech

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.