Semtech (NASDAQ:SMTC) Trading Down 7.2% – Here’s Why

Shares of Semtech Corporation (NASDAQ:SMTC) traded down 7.2% on Friday . The company traded as low as $152.78 and last traded at $154.3610. 2,116,785 shares were traded during mid-day trading, a decline of 9% from the average session volume of 2,333,481 shares. The stock had previously closed at $166.33.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Negative Sentiment: Northland downgraded Semtech to Market Perform from Outperform, citing valuation concerns and a more cautious view of the next few quarters, including risks tied to supply chain disruptions and softer AI infrastructure spending. Article Title
• Negative Sentiment: Recent insider activity may be adding to investor caution, with multiple executives selling shares over the past several months and no reported open-market insider purchases in that period. Article Title
• Negative Sentiment: TipRanks reported a newly disclosed risk tied to recent unregistered securities sales, which could create regulatory and financing concerns for the company. Article Title

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Weiss Ratings downgraded Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Tuesday, March 24th. Roth Mkm raised their target price on Semtech from $102.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday. Morgan Stanley raised their target price on Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a report on Wednesday. Oppenheimer set a $200.00 target price on Semtech in a report on Wednesday. Finally, Robert W. Baird raised their target price on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $179.73.

Semtech Price Performance

The company has a market cap of $14.33 billion, a price-to-earnings ratio of -394.85 and a beta of 2.22. The company has a fifty day moving average price of $107.16 and a two-hundred day moving average price of $88.86. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.86.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $291.00 million for the quarter, compared to analyst estimates of $283.53 million. During the same quarter last year, the firm earned $0.38 EPS. Semtech’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, equities research analysts anticipate that Semtech Corporation will post 1.6 EPS for the current fiscal year.

Insider Activity at Semtech

In related news, Director Paul V. Walsh, Jr. sold 500 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $138.21, for a total value of $69,105.00. Following the sale, the director owned 23,279 shares of the company’s stock, valued at $3,217,390.59. The trade was a 2.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 7,500 shares of the business’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $81.73, for a total value of $612,975.00. Following the completion of the sale, the executive vice president directly owned 8,811 shares in the company, valued at approximately $720,123.03. This represents a 45.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 36,884 shares of company stock worth $3,069,245 in the last three months. Company insiders own 0.48% of the company’s stock.

Institutional Trading of Semtech

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in Semtech by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company’s stock valued at $873,842,000 after buying an additional 298,987 shares in the last quarter. Ameriprise Financial Inc. raised its position in Semtech by 3.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company’s stock valued at $526,861,000 after purchasing an additional 261,647 shares during the last quarter. Capital Research Global Investors raised its position in Semtech by 13.9% in the 3rd quarter. Capital Research Global Investors now owns 4,691,676 shares of the semiconductor company’s stock valued at $335,220,000 after purchasing an additional 571,372 shares during the last quarter. State Street Corp raised its position in Semtech by 1.5% in the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock valued at $182,235,000 after purchasing an additional 60,788 shares during the last quarter. Finally, Whale Rock Capital Management LLC raised its position in Semtech by 11.3% in the 4th quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock valued at $287,499,000 after purchasing an additional 396,504 shares during 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.