Semtech (NASDAQ:SMTC) Shares Gap Down – What’s Next?

Shares of Semtech Co. (NASDAQ:SMTC) gapped down before the market opened on Monday . The stock had previously closed at $73.02, but opened at $65.50. Semtech shares last traded at $59.37, with a volume of 1,542,880 shares traded.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SMTC. Stifel Nicolaus increased their target price on shares of Semtech from $65.00 to $75.00 and gave the company a “buy” rating in a report on Monday, January 6th. Roth Mkm lifted their price objective on Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Benchmark lifted their price target on Semtech from $56.00 to $82.00 and gave the stock a “buy” rating in a research note on Tuesday, November 26th. Piper Sandler reissued an “overweight” rating and issued a $75.00 price objective (up from $60.00) on shares of Semtech in a research note on Tuesday, November 26th. Finally, Craig Hallum lifted their target price on shares of Semtech from $48.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Three analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $71.09.

Semtech Trading Down 22.8 %

The company has a market cap of $4.27 billion, a price-to-earnings ratio of -4.34 and a beta of 1.65. The firm has a 50-day moving average price of $64.42 and a 200 day moving average price of $48.74.

Semtech (NASDAQ:SMTC) last announced its quarterly 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. Semtech had a negative net margin of 99.08% and a negative return on equity of 154.99%. The company had revenue of $236.80 million during the quarter, compared to the consensus estimate of $232.89 million. During the same quarter in the previous year, the company posted $0.02 earnings per share. The company’s revenue for the quarter was up 17.9% compared to the same quarter last year.

Insider Activity at Semtech

In related news, SVP Imran Sherazi sold 2,946 shares of the firm’s stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $63.30, for a total transaction of $186,481.80. Following the completion of the sale, the senior vice president now directly owns 6,317 shares in the company, valued at approximately $399,866.10. This trade represents a 31.80 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Asaf Silberstein sold 2,000 shares of the firm’s stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $70.00, for a total value of $140,000.00. Following the sale, the chief operating officer now directly owns 76,417 shares of the company’s stock, valued at approximately $5,349,190. This represents a 2.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 13,757 shares of company stock worth $917,305 in the last 90 days. Corporate insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On Semtech

Large investors have recently made changes to their positions in the business. Canada Pension Plan Investment Board acquired a new stake in shares of Semtech in the second quarter worth about $60,000. AQR Capital Management LLC bought a new stake in shares of Semtech in the 2nd quarter worth approximately $4,939,000. Millennium Management LLC increased its holdings in Semtech by 26.6% in the 2nd quarter. Millennium Management LLC now owns 3,646,449 shares of the semiconductor company’s stock valued at $108,956,000 after buying an additional 765,877 shares during the period. The Manufacturers Life Insurance Company increased its stake in Semtech by 15.3% in the second quarter. The Manufacturers Life Insurance Company now owns 35,691 shares of the semiconductor company’s stock valued at $1,066,000 after acquiring an additional 4,743 shares during the period. Finally, Mackenzie Financial Corp acquired a new position in shares of Semtech in the 2nd quarter worth approximately $437,000.

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.