Semtech (NASDAQ:SMTC) Shares Down 7.8% – Time to Sell?

Semtech Corporation (NASDAQ:SMTC)’s stock price fell 7.8% during trading on Tuesday . The stock traded as low as $141.65 and last traded at $142.2310. 482,298 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 2,646,017 shares. The stock had previously closed at $154.22.

Wall Street Analyst Weigh In

SMTC has been the subject of a number of recent analyst reports. Robert W. Baird boosted their price target on shares of Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research report on Wednesday, May 27th. Susquehanna lifted their price objective on Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research note on Wednesday, May 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Semtech in a research note on Thursday, June 18th. Northland Securities cut Semtech from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 26th. Finally, TD Cowen upped their target price on Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average price target of $189.07.

Semtech Stock Down 7.3%

The stock’s fifty day moving average price is $139.50 and its 200 day moving average price is $117.09. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The stock has a market cap of $11.68 billion, a P/E ratio of -321.44 and a beta of 2.35.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. The company had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm’s revenue was up 15.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, research analysts forecast that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Activity

In other Semtech news, insider John Michael Wilson sold 5,500 shares of Semtech stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $170.00, for a total transaction of $935,000.00. Following the transaction, the insider directly owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. This trade represents a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Mark Lin sold 970 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction of $145,897.70. Following the completion of the sale, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 21,734 shares of company stock worth $3,133,986. 0.44% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. FNY Investment Advisers LLC lifted its stake in shares of Semtech by 900.0% in the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Semtech in the second quarter worth $32,000. Banque Cantonale Vaudoise bought a new position in Semtech in the first quarter worth $33,000. IFP Advisors Inc purchased a new position in Semtech during the fourth quarter valued at $53,000. Finally, Allworth Financial LP purchased a new position in Semtech during the second quarter valued at $55,000.

Semtech Company Profile

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.