Semtech (NASDAQ:SMTC) Shares Up 12.6% – Still a Buy?

Shares of Semtech Corporation (NASDAQ:SMTC) shot up 12.6% during trading on Monday. The company traded as high as $115.43 and last traded at $116.2420. 783,155 shares changed hands during trading, a decline of 73% from the average session volume of 2,906,853 shares. The stock had previously closed at $103.21.

Analyst Upgrades and Downgrades

SMTC has been the subject of several research reports. BMO Capital Markets lifted their target price on Semtech from $155.00 to $230.00 and gave the company an “outperform” rating in a research report on Tuesday, October 13th. Robert W. Baird increased their target price on Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. B. Riley Financial dropped their price objective on Semtech from $210.00 to $190.00 and set a “buy” rating on the stock in a report on Monday. Benchmark restated a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. Finally, New Street Research set a $230.00 target price on Semtech in a research report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Semtech has an average rating of “Moderate Buy” and an average price target of $212.00.

Semtech Stock Performance

The stock has a market cap of $10.84 billion, a price-to-earnings ratio of 76.86 and a beta of 2.50. The stock’s 50 day moving average is $155.15 and its two-hundred day moving average is $125.55. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same period in the previous year, the business posted $0.41 earnings per share. Semtech’s quarterly revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts anticipate that Semtech Corporation will post 2.80 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mark Lin sold 967 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total value of $172,967.29. Following the transaction, the chief financial officer owned 35,999 shares of the company’s stock, valued at approximately $6,439,141.13. The trade was a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rodolpho C. Cardenuto sold 5,321 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $165.00, for a total value of $877,965.00. The SEC filing for this sale provides additional information. Insiders sold 14,237 shares of company stock worth $2,337,597 over the last quarter. 0.44% of the stock is owned by insiders.

Hedge Funds Weigh In On Semtech

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. BlackRock Inc. acquired a new stake in shares of Semtech in the 2nd quarter valued at approximately $1,577,947,000. ABS Investment Management LLC purchased a new position in Semtech in the second quarter worth $178,035,000. Andar Capital Management HK Ltd acquired a new stake in Semtech in the second quarter valued at $162,000,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Semtech by 396.3% during the 2nd 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. Finally, Assenagon Asset Management S.A. boosted its position in shares of Semtech by 56.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 546,422 shares of the semiconductor company’s stock worth $97,454,000 after purchasing an additional 196,734 shares in the last quarter.

About Semtech

Semtech Corporation is a semiconductor and connectivity technology company that develops products for communications, industrial, and consumer applications. Its portfolio includes analog and mixed-signal semiconductors, signal-integrity and protection products, and power-management solutions used in electronic systems.

The company is known for LoRa technology, which supports low-power, long-range wireless communications for Internet of Things (IoT) devices. Semtech also provides cellular IoT modules, routers, and related services, expanding its connectivity offerings through its acquisition of Sierra Wireless in 2023.

Founded in 1960, Semtech serves customers around the world through its international operations and sales network.