Semtech (NASDAQ:SMTC) Shares Gap Up Following Strong Earnings

Semtech Co. (NASDAQ:SMTC)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $32.71, but opened at $37.26. Semtech shares last traded at $37.51, with a volume of 2,130,062 shares.

The semiconductor company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.08. The firm had revenue of $251.00 million for the quarter, compared to analyst estimates of $249.40 million. Semtech’s revenue was up 30.1% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.06) EPS.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Piper Sandler restated an “overweight” rating and set a $55.00 price target (down from $75.00) on shares of Semtech in a research report on Monday, February 10th. Susquehanna lifted their price objective on Semtech from $55.00 to $60.00 and gave the stock a “positive” rating in a research report on Thursday, November 21st. Robert W. Baird dropped their target price on Semtech from $80.00 to $60.00 and set an “outperform” rating for the company in a report on Friday, February 7th. Craig Hallum reduced their price target on Semtech from $70.00 to $55.00 and set a “buy” rating on the stock in a report on Friday. Finally, Roth Mkm raised their price objective on shares of Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Three analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $63.82.

Insiders Place Their Bets

In other Semtech news, CFO Mark Lin sold 10,890 shares of the stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $34.68, for a total value of $377,665.20. Following the sale, the chief financial officer now owns 11,625 shares of the company’s stock, valued at $403,155. This trade represents a 48.37 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Imran Sherazi sold 1,338 shares of the business’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $75.00, for a total value of $100,350.00. Following the transaction, the senior vice president now directly owns 14 shares of the company’s stock, valued at approximately $1,050. This represents a 98.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 27,637 shares of company stock worth $1,472,726 in the last ninety days. 0.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Semtech

Hedge funds and other institutional investors have recently modified their holdings of the company. Huntington National Bank raised its stake in Semtech by 105.2% in the third quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 302 shares in the last quarter. Hollencrest Capital Management acquired a new stake in shares of Semtech during the 4th quarter worth about $31,000. Dunhill Financial LLC acquired a new stake in shares of Semtech during the 4th quarter worth about $31,000. Smartleaf Asset Management LLC lifted its stake in Semtech by 190.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 770 shares of the semiconductor company’s stock worth $48,000 after purchasing an additional 505 shares during the last quarter. Finally, Kayne Anderson Rudnick Investment Management LLC acquired a new position in Semtech in the fourth quarter valued at approximately $52,000.

Semtech Price Performance

The company’s 50 day simple moving average is $52.84 and its 200 day simple moving average is $51.25. The company has a market capitalization of $2.85 billion, a PE ratio of -2.88, a price-to-earnings-growth ratio of 2.12 and a beta of 1.69.

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.