Semtech (NASDAQ:SMTC) Hits New 1-Year High – Still a Buy?

Semtech Corporation (NASDAQ:SMTC)’s share price hit a new 52-week high during trading on Thursday . The company 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.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SMTC. Needham & Company LLC reiterated a “buy” rating and set a $200.00 price target on shares of Semtech in a research note on Wednesday, August 26th. Susquehanna upped 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. Wall Street Zen upgraded Semtech from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Roth Capital set a $220.00 target price on Semtech in a report on Wednesday, August 26th. Finally, Benchmark restated a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. Fifteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Semtech has an average rating of “Moderate Buy” and an average target price of $204.71.

Semtech Stock Up 7.9%

The stock has a market capitalization of $16.88 billion, a PE ratio of 119.78 and a beta of 2.35. The firm’s fifty day moving average is $135.29 and its 200-day moving average is $124.98. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data 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 return on equity of 21.74% and a net margin of 13.11%.The company had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same quarter in the previous year, the company earned $0.41 EPS. The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities research analysts predict that Semtech Corporation will post 2.64 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Mark Lin sold 683 shares of the 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 transaction, the chief financial officer owned 35,366 shares in the company, valued at $5,655,023.40. This trade represents a 1.89% decrease in their position. The sale was disclosed in a document filed with the SEC, 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 2,264 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the completion of the sale, the executive vice president owned 8,611 shares of the company’s stock, valued at $1,118,568.90. This trade represents a 20.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 23,917 shares of company stock valued at $3,413,918 in the last quarter. Corporate insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Semtech

Hedge funds and other institutional investors have recently modified their holdings of the stock. Royce & Associates LP lifted its stake in shares of Semtech by 144.5% during the 4th quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company’s stock worth $7,930,000 after purchasing an additional 63,603 shares during the period. Geode Capital Management LLC grew its position in shares of Semtech by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock valued at $154,704,000 after purchasing an additional 6,715 shares during the period. Swiss National Bank grew its position in shares of Semtech by 6.9% in the first quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company’s stock valued at $14,071,000 after purchasing an additional 11,800 shares during the period. Osterweis Capital Management Inc. acquired a new position in Semtech in the second quarter valued at $9,783,000. Finally, Canada Pension Plan Investment Board acquired a new position in Semtech in the second quarter valued at $39,313,000.

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.