Semtech (NASDAQ:SMTC) Shares Gap Down – Should You Sell?

Semtech Corporation (NASDAQ:SMTC)’s share price gapped down before the market opened on Friday . The stock had previously closed at $127.65, but opened at $118.61. Semtech shares last traded at $121.1260, with a volume of 584,902 shares traded.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on SMTC shares. Northland Securities lowered Semtech from an “outperform” rating to a “market perform” rating in a research note on Tuesday, May 26th. Morgan Stanley boosted their target price on Semtech from $155.00 to $175.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 27th. Craig Hallum increased their target price on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Semtech in a research note on Thursday, June 18th. Finally, Susquehanna lifted their price target on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $189.07.

Semtech Price Performance

The firm has a market cap of $11.64 billion, a P/E ratio of -320.41 and a beta of 2.31. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The business has a 50-day moving average of $149.47 and a two-hundred day moving average of $108.48.

Semtech (NASDAQ:SMTC) last posted its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The firm had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. During the same period last year, the company earned $0.38 earnings per share. The business’s quarterly revenue was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, sell-side analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Semtech

In related news, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the sale, the chief operating officer directly owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,734 shares of company stock worth $3,256,056 over the last quarter. Insiders own 0.48% of the company’s stock.

Institutional Trading of Semtech

A number of institutional investors and hedge funds have recently bought and sold shares of SMTC. FNY Investment Advisers LLC lifted its holdings in Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after buying an additional 180 shares during the period. Banque Cantonale Vaudoise acquired a new stake in shares of Semtech in the first quarter valued at about $33,000. IFP Advisors Inc acquired a new stake in shares of Semtech in the fourth quarter valued at about $53,000. Smartleaf Asset Management LLC raised its position in shares of Semtech by 24.1% during the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 247 shares during the last quarter. Finally, Sound Income Strategies LLC bought a new position in shares of Semtech during the fourth quarter worth about $60,000.

About Semtech

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.