Semtech (NASDAQ:SMTC) Sets New 1-Year High – Should You Buy?

Semtech Corporation (NASDAQ:SMTC) shares reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $84.88 and last traded at $82.9950, with a volume of 79319 shares. The stock had previously closed at $81.98.

Wall Street Analysts Forecast Growth

SMTC has been the subject of several research analyst reports. Susquehanna upped their price target on Semtech from $65.00 to $80.00 and gave the stock a “positive” rating in a research note on Tuesday, November 18th. Robert W. Baird increased their target price on shares of Semtech from $70.00 to $88.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 25th. Summit Insights upgraded shares of Semtech from a “hold” rating to a “buy” rating in a report on Tuesday, November 25th. UBS Group reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, November 25th. Finally, Oppenheimer reissued an “outperform” rating and issued a $81.00 target price on shares of Semtech in a research note on Tuesday, November 25th. Fourteen research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Semtech has an average rating of “Moderate Buy” and an average target price of $79.21.

Semtech Trading Down 2.7%

The firm has a market cap of $7.38 billion, a P/E ratio of 257.26 and a beta of 2.01. The business’s 50-day moving average is $75.99 and its two-hundred day moving average is $66.25. The company has a current ratio of 2.43, a quick ratio of 1.71 and a debt-to-equity ratio of 0.87.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Monday, November 24th. The semiconductor company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.45 by $0.03. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The company had revenue of $266.97 million for the quarter, compared to analyst estimates of $266.36 million. During the same quarter last year, the business earned $0.26 earnings per share. Semtech’s revenue was up 12.8% compared to the same quarter last year. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. As a group, analysts expect that Semtech Corporation will post -0.02 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other Semtech news, insider John Michael Wilson sold 5,000 shares of the stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $75.12, for a total transaction of $375,600.00. Following the transaction, the insider directly owned 60,066 shares of the company’s stock, valued at $4,512,157.92. This represents a 7.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Saar Gillai sold 3,600 shares of the company’s stock in a transaction on Wednesday, January 7th. The stock was sold at an average price of $75.26, for a total transaction of $270,936.00. Following the sale, the director directly owned 9,523 shares of the company’s stock, valued at approximately $716,700.98. This represents a 27.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 16,967 shares of company stock worth $1,316,108. 0.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Semtech

A number of hedge funds have recently modified their holdings of the stock. Westfield Capital Management Co. LP lifted its position in shares of Semtech by 107.8% during the second quarter. Westfield Capital Management Co. LP now owns 2,747,260 shares of the semiconductor company’s stock worth $124,011,000 after purchasing an additional 1,424,909 shares in the last quarter. Think Investments LP acquired a new stake in shares of Semtech in the third quarter valued at approximately $58,618,000. Ameriprise Financial Inc. raised its position in Semtech by 10.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after purchasing an additional 666,456 shares during the last quarter. Atreides Management LP acquired a new position in Semtech during the 2nd quarter worth $29,880,000. Finally, Hood River Capital Management LLC boosted its position in Semtech by 36.0% in the 2nd quarter. Hood River Capital Management LLC now owns 2,244,631 shares of the semiconductor company’s stock valued at $101,323,000 after buying an additional 594,529 shares during the last quarter.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.