Semtech (NASDAQ:SMTC) Shares Up 5.9% - Still a Buy?

Semtech Co. (NASDAQ:SMTC - Get Free Report) rose 5.9% on Wednesday . The company traded as high as $41.03 and last traded at $40.92. Approximately 911,686 shares changed hands during mid-day trading, a decline of 58% from the average daily volume of 2,182,070 shares. The stock had previously closed at $38.65.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on SMTC shares. UBS Group lowered their price objective on Semtech from $65.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday, March 14th. Piper Sandler reiterated an "overweight" rating and issued a $55.00 price objective (down from $75.00) on shares of Semtech in a report on Monday, February 10th. B. Riley upped their target price on shares of Semtech from $61.00 to $85.00 and gave the company a "buy" rating in a research note on Tuesday, November 26th. Benchmark reduced their price target on shares of Semtech from $82.00 to $68.00 and set a "buy" rating for the company in a research note on Friday, March 14th. Finally, Needham & Company LLC restated a "buy" rating and set a $54.00 price objective on shares of Semtech in a research report on Friday, March 14th. Three investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $61.55.

Semtech Price Performance

The company's 50-day simple moving average is $49.04 and its 200 day simple moving average is $51.12. The firm has a market cap of $3.00 billion, a P/E ratio of -3.04, a price-to-earnings-growth ratio of 2.12 and a beta of 1.69.

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Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings results on Thursday, March 13th. The semiconductor company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.08. The company had revenue of $251.00 million for the quarter, compared to analysts' expectations of $249.40 million. The business's quarterly revenue was up 30.1% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.06) EPS. Analysts anticipate that Semtech Co. will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Mark Lin sold 10,890 shares of the firm's stock in a transaction that occurred on Thursday, March 6th. The stock was sold at an average price of $34.68, for a total transaction of $377,665.20. Following the completion of the sale, the chief financial officer now directly owns 11,625 shares of the company's stock, valued at approximately $403,155. This trade represents a 48.37 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Imran Sherazi sold 1,338 shares of the company's stock in a transaction on Friday, January 17th. The shares were sold at an average price of $75.00, for a total value of $100,350.00. Following the completion of the transaction, the senior vice president now directly owns 14 shares in the company, valued at $1,050. This trade represents a 98.96 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 18,577 shares of company stock valued at $884,310. Company insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Semtech

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Whale Rock Capital Management LLC increased its position in shares of Semtech by 364.2% during the fourth quarter. Whale Rock Capital Management LLC now owns 3,266,202 shares of the semiconductor company's stock worth $202,015,000 after acquiring an additional 2,562,602 shares during the period. Wellington Management Group LLP lifted its stake in shares of Semtech by 827.0% during the 4th quarter. Wellington Management Group LLP now owns 2,143,081 shares of the semiconductor company's stock worth $132,550,000 after purchasing an additional 1,911,890 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of Semtech by 13.0% in the 4th quarter. Vanguard Group Inc. now owns 11,542,545 shares of the semiconductor company's stock valued at $713,906,000 after buying an additional 1,326,226 shares in the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Semtech in the 4th quarter worth approximately $51,315,000. Finally, Fred Alger Management LLC raised its stake in shares of Semtech by 122.6% during the 4th quarter. Fred Alger Management LLC now owns 1,491,844 shares of the semiconductor company's stock worth $92,271,000 after acquiring an additional 821,671 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.