Semtech (NASDAQ:SMTC) Shares Gap Down – Should You Sell?

Shares of Semtech Corporation (NASDAQ:SMTC) gapped down before the market opened on Wednesday . The stock had previously closed at $161.85, but opened at $150.41. Semtech shares last traded at $151.4190, with a volume of 594,253 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SMTC. Northland Securities cut shares of Semtech from an “outperform” rating to a “market perform” rating in a research note on Tuesday, May 26th. Needham & Company LLC lifted their target price on Semtech from $105.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. UBS Group boosted their price target on Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Zacks Research upgraded Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Semtech in a report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $189.07.

Semtech Stock Performance

The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The firm has a market cap of $12.60 billion, a PE ratio of -346.85 and a beta of 2.31. The stock’s 50 day moving average price is $144.05 and its 200 day moving average price is $104.10.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. The firm had revenue of $291.02 million during the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm’s revenue was up 15.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, equities analysts forecast that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider John Michael Wilson sold 5,500 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $170.00, for a total transaction of $935,000.00. Following the transaction, the insider directly owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. The trade was a 6.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Martin Burvill sold 2,500 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $88.98, for a total transaction of $222,450.00. Following the completion of the sale, the director directly owned 4,409 shares of the company’s stock, valued at $392,312.82. This trade represents a 36.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 13,500 shares of company stock valued at $1,866,435. Corporate insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On Semtech

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Banque Cantonale Vaudoise purchased a new position in Semtech in the 1st quarter valued at about $33,000. IFP Advisors Inc purchased a new stake in shares of Semtech during the fourth quarter worth about $53,000. Huntington National Bank lifted its stake in shares of Semtech by 151.3% in the third quarter. Huntington National Bank now owns 749 shares of the semiconductor company’s stock worth $54,000 after acquiring an additional 451 shares in the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of Semtech by 24.1% in the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 247 shares in the last quarter. Finally, Sound Income Strategies LLC purchased a new position in Semtech in the fourth quarter valued at about $60,000.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.