Key Points
- Semtech director Julie Garcia Ruehl sold 1,500 shares for $217,500 at $145 per share, reducing her stake by 17.36% to 7,140 shares. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan.
- Semtech reported quarterly EPS of $0.71 and revenue of $341.87 million, exceeding analyst estimates and marking 32.7% year-over-year revenue growth. The company guided to next-quarter EPS of $1.02–$1.08.
- Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $204.71, although the stock’s price-to-earnings ratio above 100 highlights elevated valuation and downside risk.
Semtech Corporation (NASDAQ:SMTC - Get Free Report) Director Julie Garcia Ruehl sold 1,500 shares of the company's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the completion of the transaction, the director owned 7,140 shares of the company's stock, valued at approximately $1,035,300. The trade was a 17.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Semtech Trading Up 0.8%
NASDAQ SMTC opened at $163.94 on Thursday. The firm's fifty day moving average price is $132.74 and its 200 day moving average price is $122.55. Semtech Corporation has a 12 month low of $57.50 and a 12 month high of $177.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The company has a market capitalization of $15.30 billion, a price-to-earnings ratio of 108.57 and a beta of 2.35.
Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm had revenue of $341.87 million during the quarter, compared to analysts' expectations of $328.67 million. During the same period in the previous year, the company earned $0.41 earnings per share. Semtech's quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts expect that Semtech Corporation will post 2.64 earnings per share for the current fiscal year.
Key Stories Impacting Semtech
Here are the key news stories impacting Semtech this week:
- Positive Sentiment: Semtech reported quarterly EPS of $0.71, ahead of the $0.61 consensus estimate, while revenue of $341.87 million exceeded expectations of $328.67 million. Revenue increased 32.7% year over year, and the company provided EPS guidance of $1.02 to $1.08 for the next quarter. These results reinforce the market’s view that growth is accelerating. Semtech rallies 10% after earnings and guidance beat
- Positive Sentiment: The company introduced a 224G linear transimpedance amplifier and driver portfolio for near-packaged optics and co-packaged optics. The products target AI and machine-learning clusters, hyperscale data centers and next-generation optical connectivity, providing exposure to expanding data-center bandwidth demand. Semtech Sets Bar for 224G Optical Connectivity
- Positive Sentiment: Semtech also announced an industry-first 10G PON chipset for 50G optical line-terminal modules. The chipset is designed to support multiple generations of PON technology, potentially helping network-equipment customers transition to higher-speed broadband deployments. Semtech Delivers 10G PON Chipset
- Neutral Sentiment: CEO Hong Hou sold 2,000 shares and director Julie Garcia Ruehl sold 1,500 shares. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as a bearish signal, although they still represent near-term insider selling.
- Negative Sentiment: Semtech’s sharp advance has left the stock trading at a high valuation, with a price-to-earnings ratio above 100. One valuation analysis estimated fair value substantially below the market price, raising downside risk if growth or guidance weakens. Semtech valuation analysis
Hedge Funds Weigh In On Semtech
Several institutional investors have recently added to or reduced their stakes in SMTC. Royce & Associates LP lifted its position in Semtech by 144.5% during the 4th quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company's stock worth $7,930,000 after acquiring an additional 63,603 shares during the period. Argos Wealth Advisors LLC acquired a new position in shares of Semtech in the fourth quarter valued at approximately $640,000. Geode Capital Management LLC raised its stake in shares of Semtech by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company's stock worth $154,704,000 after purchasing an additional 6,715 shares during the last quarter. Swiss National Bank raised its stake in shares of Semtech by 6.9% during the first quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company's stock worth $14,071,000 after purchasing an additional 11,800 shares during the last quarter. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of Semtech during the second quarter worth $9,783,000.
Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on SMTC. Roth Capital set a $220.00 target price on Semtech in a research report on Wednesday, August 26th. UBS Group lifted their price target on Semtech from $225.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, August 26th. Stifel Nicolaus boosted their price objective on Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. New Street Research set a $230.00 price objective on Semtech in a report on Thursday, August 20th. Finally, B. Riley Financial increased their price objective on Semtech from $165.00 to $210.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Fifteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $204.71.
Check Out Our Latest Research Report on SMTC
About Semtech
(
Get Free Report)
Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.
The company's portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.
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