Semtech (NASDAQ:SMTC) Shares Gap Up After Better-Than-Expected Earnings

Semtech Co. (NASDAQ:SMTC) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $53.44, but opened at $63.50. Semtech shares last traded at $60.71, with a volume of 1,030,703 shares traded.

The semiconductor company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.23 by $0.03. The business had revenue of $236.80 million for the quarter, compared to analysts’ expectations of $232.89 million. Semtech had a negative return on equity of 154.99% and a negative net margin of 107.21%. The firm’s revenue was up 17.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.02 earnings per share.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on SMTC shares. Needham & Company LLC reiterated a “buy” rating and set a $70.00 price target (up previously from $50.00) on shares of Semtech in a report on Tuesday. Roth Mkm upped their price objective on Semtech from $50.00 to $60.00 and gave the company a “buy” rating in a research note on Monday. B. Riley increased their price target on Semtech from $58.00 to $61.00 and gave the stock a “buy” rating in a research note on Wednesday, August 28th. Stifel Nicolaus upped their price target on shares of Semtech from $58.00 to $65.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Benchmark reissued a “buy” rating and set a $56.00 price objective on shares of Semtech in a report on Monday, October 7th. Three research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat.com, Semtech currently has a consensus rating of “Moderate Buy” and an average price target of $62.70.

Hedge Funds Weigh In On Semtech

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Huntington National Bank increased its position in shares of Semtech by 105.2% during the 3rd quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 302 shares during the last quarter. Arizona State Retirement System boosted its stake in shares of Semtech by 2.3% during the 2nd quarter. Arizona State Retirement System now owns 18,074 shares of the semiconductor company’s stock worth $540,000 after acquiring an additional 407 shares during the last quarter. Hanseatic Management Services Inc. increased its stake in shares of Semtech by 3.2% in the 3rd quarter. Hanseatic Management Services Inc. now owns 14,406 shares of the semiconductor company’s stock worth $658,000 after purchasing an additional 447 shares in the last quarter. Nisa Investment Advisors LLC lifted its position in Semtech by 6.9% during the second quarter. Nisa Investment Advisors LLC now owns 7,159 shares of the semiconductor company’s stock valued at $214,000 after purchasing an additional 461 shares in the last quarter. Finally, Creative Planning lifted its position in Semtech by 3.4% during the second quarter. Creative Planning now owns 18,018 shares of the semiconductor company’s stock valued at $538,000 after purchasing an additional 588 shares in the last quarter.

Semtech Price Performance

The company has a market capitalization of $4.57 billion, a PE ratio of -4.48 and a beta of 1.54. The company has a 50-day moving average of $45.83 and a two-hundred day moving average of $38.96.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.