Semtech (NASDAQ:SMTC) Shares Down 5.1% – Here’s Why

Semtech Co. (NASDAQ:SMTC) shares dropped 5.1% on Thursday . The stock traded as low as $68.20 and last traded at $68.82. Approximately 913,254 shares traded hands during mid-day trading, a decline of 38% from the average daily volume of 1,477,190 shares. The stock had previously closed at $72.51.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on SMTC shares. Roth Mkm increased their price objective on shares of Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Benchmark increased their price target on Semtech from $56.00 to $82.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. B. Riley boosted their price objective on Semtech from $61.00 to $85.00 and gave the company a “buy” rating in a report on Tuesday, November 26th. Craig Hallum increased their target price on Semtech from $48.00 to $70.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. Finally, Northland Securities boosted their price target on shares of Semtech from $60.00 to $66.00 and gave the company an “outperform” rating in a research note on Tuesday, December 10th. Three equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat, Semtech presently has a consensus rating of “Moderate Buy” and a consensus target price of $71.09.

Semtech Stock Performance

The stock has a market cap of $5.68 billion, a PE ratio of -5.75 and a beta of 1.65. The company’s 50 day simple moving average is $61.68 and its 200 day simple moving average is $47.07.

Semtech (NASDAQ:SMTC) last announced its earnings results on Monday, November 25th. The semiconductor company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.03. The firm had revenue of $236.80 million during the quarter, compared to analyst estimates of $232.89 million. Semtech had a negative return on equity of 154.99% and a negative net margin of 99.08%. The business’s revenue was up 17.9% compared to the same quarter last year. During the same period last year, the firm posted $0.02 EPS.

Insider Buying and Selling at Semtech

In other news, COO Asaf Silberstein sold 2,000 shares of the company’s stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $70.00, for a total transaction of $140,000.00. Following the transaction, the chief operating officer now owns 76,417 shares of the company’s stock, valued at $5,349,190. This represents a 2.55 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Imran Sherazi sold 2,946 shares of Semtech stock in a transaction dated Thursday, December 19th. The stock was sold at an average price of $63.30, for a total value of $186,481.80. Following the completion of the sale, the senior vice president now directly owns 6,317 shares of the company’s stock, valued at approximately $399,866.10. This trade represents a 31.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 12,419 shares of company stock worth $816,955 over the last three months. 0.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Huntington National Bank boosted its holdings in shares of Semtech by 105.2% in the third quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 302 shares during the period. Canada Pension Plan Investment Board bought a new position in Semtech in the 2nd quarter worth about $60,000. NBC Securities Inc. grew its holdings in Semtech by 115.8% during the 3rd quarter. NBC Securities Inc. now owns 1,377 shares of the semiconductor company’s stock valued at $62,000 after buying an additional 739 shares in the last quarter. Quarry LP bought a new stake in shares of Semtech during the second quarter valued at about $63,000. Finally, International Assets Investment Management LLC lifted its holdings in shares of Semtech by 4,464.9% in the third quarter. International Assets Investment Management LLC now owns 1,689 shares of the semiconductor company’s stock worth $77,000 after buying an additional 1,652 shares in the last quarter.

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.