Semtech (NASDAQ:SMTC) Sets New 52-Week High – Should You Buy?

Semtech Corporation (NASDAQ:SMTC)’s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $177.99 and last traded at $175.8210, with a volume of 1107305 shares changing hands. The stock had previously closed at $167.55.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on SMTC shares. Benchmark reissued a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. Mizuho set a $225.00 target price on shares of Semtech in a research note on Wednesday, May 27th. Citigroup downgraded shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Needham & Company LLC reissued a “buy” rating and set a $200.00 price target on shares of Semtech in a research report on Wednesday, August 26th. Finally, Oppenheimer set a $200.00 price target on shares of Semtech in a report on Wednesday, May 27th. Fifteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $204.71.

Semtech Price Performance

The stock has a market cap of $17.27 billion, a P/E ratio of 122.52 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70. The business has a 50 day simple moving average of $137.08 and a 200-day simple moving average of $126.01.

Semtech (NASDAQ:SMTC) last announced its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10. The firm had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The business’s revenue was up 32.7% compared to the same quarter last year. During the same period last year, the firm posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts forecast that Semtech Corporation will post 2.64 EPS for the current year.

Insiders Place Their Bets

In other Semtech news, CFO Mark Lin sold 683 shares of the business’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $159.90, for a total value of $109,211.70. Following the transaction, the chief financial officer directly owned 35,366 shares in the company, valued at $5,655,023.40. The trade was a 1.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the transaction, the director directly owned 7,140 shares of the company’s stock, valued at $1,035,300. This represents a 17.36% 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 quarter, insiders have sold 29,238 shares of company stock valued at $4,291,883. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of Semtech during the 2nd quarter worth $1,577,947,000. ABS Investment Management LLC purchased a new stake in Semtech during the second quarter valued at about $178,035,000. Andar Capital Management HK Ltd bought a new position in Semtech during the second quarter worth about $162,000,000. Geode Capital Management LLC boosted its position in Semtech by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock worth $154,704,000 after purchasing an additional 6,715 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Semtech by 396.3% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after purchasing an additional 672,447 shares in the last quarter.

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.

The company’s portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.