Semtech (NASDAQ:SMTC) Trading Up 5.9% – Here’s Why

Semtech Co. (NASDAQ:SMTC) rose 5.9% during mid-day trading on Wednesday . The stock traded as high as $41.03 and last traded at $40.92. Approximately 911,686 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 2,182,070 shares. The stock had previously closed at $38.65.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Stifel Nicolaus decreased their price objective on Semtech from $60.00 to $54.00 and set a “buy” rating for the company in a research note on Friday, March 14th. Needham & Company LLC reiterated a “buy” rating and issued a $54.00 price target on shares of Semtech in a research note on Friday, March 14th. Northland Securities boosted their price target on shares of Semtech from $60.00 to $66.00 and gave the stock an “outperform” rating in a report on Tuesday, December 10th. Robert W. Baird reduced their price objective on shares of Semtech from $80.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, February 7th. Finally, Craig Hallum lowered their target price on shares of Semtech from $70.00 to $55.00 and set a “buy” rating for the company in a research note on Friday, March 14th. Three investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, Semtech currently has an average rating of “Moderate Buy” and an average target price of $61.55.

Semtech Stock Up 9.0 %

The business’s fifty day moving average price is $50.63 and its 200 day moving average price is $51.22. The firm has a market capitalization of $3.19 billion, a PE ratio of -3.24, a PEG ratio of 2.12 and a beta of 1.69.

Semtech (NASDAQ:SMTC) last released its earnings results on Thursday, March 13th. The semiconductor company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.08. The company had revenue of $251.00 million during the quarter, compared to analyst estimates of $249.40 million. During the same period in the previous year, the firm posted ($0.06) EPS. The company’s revenue for the quarter was up 30.1% on a year-over-year basis. On average, analysts anticipate that Semtech Co. will post -0.02 earnings per share for the current year.

Insider Activity

In other news, CFO Mark Lin sold 1,359 shares of the stock in a transaction dated Friday, January 3rd. The shares were sold at an average price of $65.15, for a total value of $88,538.85. Following the completion of the transaction, the chief financial officer now owns 4,164 shares in the company, valued at $271,284.60. This trade represents a 24.61 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Imran Sherazi sold 2,946 shares of the business’s stock in a transaction dated Thursday, December 19th. The stock was sold at an average price of $63.30, for a total transaction of $186,481.80. Following the sale, the senior vice president now directly owns 6,317 shares in the company, valued at approximately $399,866.10. This represents a 31.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 21,523 shares of company stock valued at $1,070,791 over the last quarter. Corporate insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Semtech

A number of hedge funds and other institutional investors have recently modified their holdings of SMTC. Mutual of America Capital Management LLC grew its holdings in Semtech by 6.3% in the third quarter. Mutual of America Capital Management LLC now owns 11,285 shares of the semiconductor company’s stock valued at $515,000 after purchasing an additional 673 shares during the last quarter. Moody National Bank Trust Division boosted its stake in shares of Semtech by 148.6% during the 4th quarter. Moody National Bank Trust Division now owns 20,568 shares of the semiconductor company’s stock worth $1,272,000 after purchasing an additional 12,296 shares during the last quarter. Principal Financial Group Inc. raised its position in shares of Semtech by 15.8% in the fourth quarter. Principal Financial Group Inc. now owns 410,613 shares of the semiconductor company’s stock valued at $25,396,000 after buying an additional 56,108 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Semtech by 6.1% during the fourth quarter. Rhumbline Advisers now owns 205,363 shares of the semiconductor company’s stock valued at $12,702,000 after buying an additional 11,878 shares during the period. Finally, Convergence Investment Partners LLC purchased a new stake in Semtech in the 4th quarter worth approximately $2,680,000.

About Semtech

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.