Semtech (NASDAQ:SMTC) Shares Gap Up on Earnings Beat

Shares of Semtech Co. (NASDAQ:SMTC) gapped up prior to trading on Tuesday following a better than expected earnings announcement. 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 trading hands.

The semiconductor company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.03. The business had revenue of $236.80 million for the quarter, compared to analyst estimates of $232.89 million. Semtech had a negative net margin of 107.21% and a negative return on equity of 154.99%. The business’s revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.02 earnings per share.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. Roth Mkm lifted their price target on Semtech from $50.00 to $60.00 and gave the company a “buy” rating in a research note on Monday. Craig Hallum raised their target price on Semtech from $48.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday. B. Riley upped their price target on shares of Semtech from $61.00 to $85.00 and gave the stock a “buy” rating in a research note on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $70.00 price objective (up previously from $50.00) on shares of Semtech in a research note on Tuesday. Finally, Northland Securities upped their target price on shares of Semtech from $46.00 to $60.00 and gave the stock an “outperform” rating in a research report on Tuesday. Three research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat.com, Semtech has a consensus rating of “Moderate Buy” and an average price target of $67.70.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SMTC. Huntington National Bank increased its position in Semtech by 105.2% during the third quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock worth $27,000 after buying an additional 302 shares in the last quarter. Ridgewood Investments LLC purchased a new stake in Semtech during the 2nd quarter worth about $44,000. Canada Pension Plan Investment Board acquired a new position in Semtech in the 2nd quarter valued at about $60,000. NBC Securities Inc. lifted its holdings in Semtech by 115.8% in the 3rd quarter. NBC Securities Inc. now owns 1,377 shares of the semiconductor company’s stock valued at $62,000 after purchasing an additional 739 shares in the last quarter. Finally, Quarry LP acquired a new stake in shares of Semtech during the 2nd quarter worth about $63,000.

Semtech Stock Up 18.1 %

The firm has a market capitalization of $4.75 billion, a PE ratio of -4.66 and a beta of 1.54. The business’s fifty day moving average price is $45.83 and its 200 day moving average price is $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.