Semtech (NASDAQ:SMTC) Shares Down 9.2% – What’s Next?

Semtech Corporation (NASDAQ:SMTC) shares dropped 9.2% during mid-day trading on Friday. The company traded as low as $109.32 and last traded at $108.3970. Approximately 306,324 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 2,904,876 shares. The stock had previously closed at $119.44.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SMTC shares. Seaport Research Partners started coverage on Semtech in a research report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 price objective for the company. Oppenheimer boosted their target price on shares of Semtech from $200.00 to $225.00 and gave the company an “outperform” rating in a report on Thursday, October 1st. Zacks Research raised shares of Semtech from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Morgan Stanley set a $205.00 price target on shares of Semtech in a research note on Friday, October 16th. Finally, Stifel Nicolaus dropped their price objective on shares of Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $212.00.

Semtech Trading Down 4.1%

The firm has a 50-day moving average price of $153.62 and a 200-day moving average price of $126.48. 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 stock has a market cap of $10.69 billion, a PE ratio of 75.89 and a beta of 2.50.

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

Insider Buying and Selling

In related news, Director Rodolpho 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 transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Mark Lin sold 967 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $178.87, for a total value of $172,967.29. Following the completion of the transaction, the chief financial officer directly owned 35,999 shares in the company, valued at $6,439,141.13. This trade represents a 2.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,237 shares of company stock worth $2,337,597 over the last 90 days. 0.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. REAP Financial Group LLC bought a new position in Semtech during the 3rd quarter valued at about $27,000. ABS Investment Management LLC purchased a new position in shares of Semtech during the second quarter valued at approximately $178,035,000. FNY Investment Advisers LLC boosted its holdings in Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Semtech in the second quarter worth approximately $32,000. Finally, Pension & Wealth Management Advisors Inc. bought a new stake in Semtech in the 3rd quarter worth approximately $53,000.

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.