Semtech (NASDAQ:SMTC) Trading Down 5.5% – Should You Sell?

Shares of Semtech Co. (NASDAQ:SMTC) were down 5.5% during mid-day trading on Tuesday . The company traded as low as $64.13 and last traded at $64.49. Approximately 235,871 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 1,868,792 shares. The stock had previously closed at $68.27.

Analyst Ratings Changes

Several equities analysts have recently commented on SMTC shares. Piper Sandler restated an “overweight” rating and issued a $75.00 price objective (up from $60.00) on shares of Semtech in a research report on Tuesday, November 26th. Benchmark upped their price target on Semtech from $56.00 to $82.00 and gave the stock a “buy” rating in a research note on Tuesday, November 26th. Roth Mkm increased their price objective on shares of Semtech from $50.00 to $60.00 and gave the company a “buy” rating in a report on Monday, November 25th. Stifel Nicolaus boosted their target price on shares of Semtech from $58.00 to $65.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. Finally, B. Riley upped their target price on shares of Semtech from $61.00 to $85.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Three analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $68.70.

Semtech Price Performance

The company’s 50-day simple moving average is $52.88 and its 200 day simple moving average is $41.96. The firm has a market cap of $4.81 billion, a P/E ratio of -4.87 and a beta of 1.65.

Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Monday, November 25th. The semiconductor company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.23 by $0.03. Semtech had a negative return on equity of 154.99% and a negative net margin of 99.08%. The company had revenue of $236.80 million during the quarter, compared to analyst estimates of $232.89 million. During the same quarter last year, the business posted $0.02 earnings per share. The firm’s revenue was up 17.9% on a year-over-year basis. Analysts anticipate that Semtech Co. will post -0.01 EPS for the current fiscal year.

Insider Activity

In related news, CFO Mark Lin sold 6,114 shares of the company’s stock in a transaction dated Tuesday, December 17th. The shares were sold at an average price of $65.74, for a total transaction of $401,934.36. Following the transaction, the chief financial officer now directly owns 3,531 shares in the company, valued at approximately $232,127.94. This represents a 63.39 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.60% of the company’s stock.

Institutional Trading of Semtech

Institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC increased its stake in Semtech by 26.6% in the 2nd quarter. Millennium Management LLC now owns 3,646,449 shares of the semiconductor company’s stock worth $108,956,000 after buying an additional 765,877 shares during the period. Disciplined Growth Investors Inc. MN grew its stake in Semtech by 4.6% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 2,609,984 shares of the semiconductor company’s stock worth $119,172,000 after acquiring an additional 114,999 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Semtech by 8.0% during the third quarter. Geode Capital Management LLC now owns 1,617,783 shares of the semiconductor company’s stock worth $73,883,000 after acquiring an additional 119,572 shares during the period. Driehaus Capital Management LLC bought a new stake in shares of Semtech during the second quarter valued at approximately $43,395,000. Finally, Charles Schwab Investment Management Inc. boosted its holdings in shares of Semtech by 10.5% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,057,880 shares of the semiconductor company’s stock valued at $48,303,000 after purchasing an additional 100,410 shares during the period.

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.