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

Semtech Corporation (NASDAQ:SMTC)’s share price gapped down prior to trading on Friday . The stock had previously closed at $127.65, but opened at $118.61. Semtech shares last traded at $121.1260, with a volume of 584,902 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts recently commented on SMTC shares. TD Cowen raised their price objective on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Benchmark upped their target price on shares of Semtech from $120.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Citigroup cut Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Robert W. Baird lifted their price target on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Finally, Morgan Stanley lifted their price target on Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $189.07.

Semtech Stock Down 1.9%

The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $11.66 billion, a price-to-earnings ratio of -318.45 and a beta of 2.31. The stock’s fifty day moving average price is $149.41 and its 200-day moving average price is $108.37.

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

Insider Activity

In other news, COO Asaf Silberstein sold 8,500 shares of the firm’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the completion of the transaction, the chief operating officer owned 96,862 shares in the company, valued at $12,378,963.60. This trade represents a 8.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total value of $294,093.60. Following the completion of the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. This represents a 20.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 22,734 shares of company stock worth $3,256,056. 0.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. FNY Investment Advisers LLC grew its stake in Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares in the last quarter. Banque Cantonale Vaudoise acquired a new position in shares of Semtech during the 1st quarter worth approximately $33,000. IFP Advisors Inc bought a new stake in shares of Semtech during the 4th quarter worth approximately $53,000. Smartleaf Asset Management LLC raised its stake in shares of Semtech by 24.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 247 shares in the last quarter. Finally, Sound Income Strategies LLC acquired a new stake in shares of Semtech in the 4th quarter valued at approximately $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.