Semtech (NASDAQ:SMTC) Shares Down 7.6% on Insider Selling

Semtech Corporation (NASDAQ:SMTC) dropped 7.6% on Monday after an insider sold shares in the company. The company traded as low as $151.32 and last traded at $154.5050. 430,377 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 2,739,300 shares. The stock had previously closed at $167.24.

Specifically, 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 completion of the sale, the chief financial officer owned 35,366 shares of the company’s stock, valued at approximately $5,655,023.40. The trade was a 1.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Hou sold 2,000 shares of the firm’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the transaction, the chief executive officer directly owned 60,799 shares in the company, valued at approximately $8,433,429.29. This represents a 3.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Semtech news, Director Julie Ruehl sold 1,500 shares of Semtech stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $145.00, for a total value of $217,500.00. Following the completion of the sale, the director owned 7,140 shares in the company, valued at $1,035,300. The trade was a 17.36% decrease in their position. The sale was disclosed in a document filed 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.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on SMTC shares. BMO Capital Markets began coverage on shares of Semtech in a research report on Wednesday, August 26th. They set an “outperform” rating and a $155.00 target price on the stock. UBS Group boosted their price target on Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, August 26th. Northland Securities raised Semtech from a “market perform” rating to an “outperform” rating and set a $182.00 price target on the stock in a research report on Thursday, August 27th. Needham & Company LLC reissued a “buy” rating and set a $200.00 target price on shares of Semtech in a report on Wednesday, August 26th. Finally, Susquehanna raised their price target on Semtech from $170.00 to $200.00 and gave the stock a “positive” rating in a research report on Wednesday, May 27th. Fifteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $204.71.

Semtech Stock Performance

The stock has a market cap of $14.08 billion, a price-to-earnings ratio of 99.94 and a beta of 2.35. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The company has a 50 day simple moving average of $134.51 and a 200 day simple moving average of $124.44.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share 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 the consensus estimate of $328.67 million. During the same period last year, the company posted $0.41 EPS. The firm’s quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, equities research analysts forecast that Semtech Corporation will post 2.64 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SMTC. Andar Capital Management HK Ltd acquired a new position in Semtech during the 2nd quarter worth about $162,000,000. BlackRock Inc. acquired a new stake in shares of Semtech in the second quarter valued at about $1,577,947,000. 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 valued at $136,298,000 after buying an additional 672,447 shares during the period. Assenagon Asset Management S.A. increased its stake in shares of Semtech by 323.0% in the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after buying an additional 596,373 shares during the period. Finally, Atreides Management LP bought a new position in shares of Semtech during the second quarter worth about $89,214,000.

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.