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

Semtech Co. (NASDAQ:SMTC)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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, topping analysts’ consensus estimates of $0.32 by $0.08. The company had revenue of $251.00 million during the quarter, compared to the consensus estimate of $249.40 million. During the same period in the previous year, the business earned ($0.06) earnings per share. Semtech’s revenue was up 30.1% on a year-over-year basis.

Wall Street Analysts Forecast Growth

SMTC has been the subject of a number of analyst reports. Stifel Nicolaus cut their price target on Semtech from $60.00 to $54.00 and set a “buy” rating for the company in a report on Friday. Roth Mkm increased their price objective on Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. B. Riley increased their price objective on Semtech from $61.00 to $85.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Piper Sandler reiterated an “overweight” rating and issued a $55.00 price objective (down previously from $75.00) on shares of Semtech in a research report on Monday, February 10th. Finally, Susquehanna increased 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. Three investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $61.55.

Insider Buying and Selling

In other Semtech news, CFO Mark Lin sold 6,114 shares of the business’s stock in a transaction on Tuesday, December 17th. The shares were sold at an average price of $65.74, for a total transaction of $401,934.36. Following the completion of the sale, the chief financial officer now directly owns 3,531 shares in the company, valued at approximately $232,127.94. The trade was a 63.39 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Imran Sherazi sold 2,946 shares of the business’s stock in a transaction on Thursday, December 19th. The shares were 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 of the company’s stock, valued at approximately $399,866.10. The trade was a 31.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 27,637 shares of company stock worth $1,472,726 in the last three months. Insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Semtech

Hedge funds have recently modified their holdings of the business. Huntington National Bank grew 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 acquiring an additional 302 shares during the period. Hollencrest Capital Management bought a new stake in shares of Semtech during the 4th quarter valued at $31,000. Dunhill Financial LLC bought a new stake in shares of Semtech during the 4th quarter valued at $31,000. Smartleaf Asset Management LLC grew its position in shares of Semtech by 190.6% during the 4th quarter. Smartleaf Asset Management LLC now owns 770 shares of the semiconductor company’s stock valued at $48,000 after acquiring an additional 505 shares during the period. Finally, Kayne Anderson Rudnick Investment Management LLC bought a new stake in shares of Semtech during the 4th quarter valued at $52,000.

Semtech Stock Performance

The company has a market cap of $3.00 billion, a P/E ratio of -3.03, a P/E/G ratio of 2.12 and a beta of 1.69. The firm’s fifty day moving average is $51.73 and its two-hundred day moving average is $51.13.

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.