Semtech (NASDAQ:SMTC) Trading 9.6% Higher - Should You Buy?

Semtech Co. (NASDAQ:SMTC - Get Free Report)'s share price shot up 9.6% during trading on Thursday . The stock traded as high as $66.89 and last traded at $66.10. 404,557 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 1,903,760 shares. The stock had previously closed at $60.30.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on SMTC shares. UBS Group started coverage on Semtech in a research report on Friday, January 17th. They set a "buy" rating and a $85.00 price objective for the company. Northland Securities raised their price objective on Semtech from $60.00 to $66.00 and gave the company an "outperform" rating in a research report on Tuesday, December 10th. Craig Hallum raised their price objective on Semtech from $48.00 to $70.00 and gave the company a "buy" rating in a research report on Tuesday, November 26th. Roth Mkm raised their price objective on Semtech from $50.00 to $60.00 and gave the company a "buy" rating in a research report on Monday, November 25th. Finally, Piper Sandler restated an "overweight" rating and set a $75.00 price objective (up previously from $60.00) on shares of Semtech in a research report on Tuesday, November 26th. Three analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company's stock. According to MarketBeat.com, Semtech presently has an average rating of "Moderate Buy" and a consensus price target of $71.09.

Semtech Trading Down 1.1 %

The firm's 50-day moving average price is $65.80 and its 200-day moving average price is $49.69. The stock has a market capitalization of $5.07 billion, a PE ratio of -5.13 and a beta of 1.65.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings results on Monday, November 25th. The semiconductor company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.03. Semtech had a negative net margin of 99.08% and a negative return on equity of 154.99%. The firm had revenue of $236.80 million during the quarter, compared to analysts' expectations of $232.89 million. During the same period in the previous year, the company earned $0.02 EPS. The firm's revenue for the quarter was up 17.9% compared to the same quarter last year.

Insider Buying and Selling

In related news, SVP Imran Sherazi sold 2,946 shares of the company's stock in a transaction dated Thursday, December 19th. The shares were 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 $399,866.10. This represents a 31.80 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Lin sold 2,990 shares of the company's stock in a transaction dated Wednesday, January 29th. The stock was sold at an average price of $59.45, for a total transaction of $177,755.50. Following the completion of the sale, the chief financial officer now directly owns 5,446 shares of the company's stock, valued at approximately $323,764.70. This trade represents a 35.44 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 16,747 shares of company stock valued at $1,095,061 in the last 90 days. Company insiders own 0.60% of the company's stock.

Institutional Trading of Semtech

A number of hedge funds have recently added to or reduced their stakes in SMTC. Huntington National Bank grew its stake in shares of Semtech by 105.2% during 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 last quarter. GAMMA Investing LLC grew its stake in shares of Semtech by 15.3% during the fourth quarter. GAMMA Investing LLC now owns 3,166 shares of the semiconductor company's stock worth $196,000 after acquiring an additional 421 shares during the last quarter. Hanseatic Management Services Inc. grew its stake in shares of Semtech by 3.2% during the third quarter. Hanseatic Management Services Inc. now owns 14,406 shares of the semiconductor company's stock worth $658,000 after acquiring an additional 447 shares during the last quarter. Creative Planning grew its stake in shares of Semtech by 3.4% during the second quarter. Creative Planning now owns 18,018 shares of the semiconductor company's stock worth $538,000 after acquiring an additional 588 shares during the last quarter. Finally, Pacer Advisors Inc. grew its stake in shares of Semtech by 51.1% during the fourth quarter. Pacer Advisors Inc. now owns 1,768 shares of the semiconductor company's stock worth $109,000 after acquiring an additional 598 shares during the last quarter.

Semtech Company Profile

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.