Semtech (NASDAQ:SMTC) Trading Down 7.3% - Time to Sell?

On Thursday, shares of Semtech Co. (NASDAQ:SMTC - Get Free Report) fell by 7.3% in mid-day trading. The stock reached a low of $62.51 and was last seen at $61.59. During the trading session, 117,649 shares exchanged hands, a significant drop of 94% compared to the average daily volume of 1,883,683 shares. The previous closing price for Semtech was $66.46.

Analyst Ratings Changes

Several research analysts have issued reports regarding Semtech's stock, reflecting a mix of optimism and cautiousness. Benchmark recently increased its price target for Semtech from $56.00 to $82.00 with a "buy" rating. Similarly, Susquehanna raised its price target from $55.00 to $60.00, giving Semtech a "positive" rating. Northland Securities upgraded its price target from $60.00 to $66.00 and rated the company as "outperform." Needham & Company LLC also increased its target price to $74.00 while maintaining a "buy" rating. Additionally, Stifel Nicolaus lifted its price target to $75.00 with a "buy" recommendation. Currently, analysts have assigned three hold ratings and eleven buy ratings, leading to a consensus rating of "Moderate Buy" and a target price of $72.00 according to MarketBeat.com.

Semtech Price Performance

In terms of price performance, Semtech's stock has reflected fluctuations. The company has a 50-day moving average price of $65.85 and a 200-day moving average price of $50.49. Its market capitalization stands at $4.13 billion, with a PE ratio of -4.18 and a PEG ratio of 2.98, alongside a beta of 1.64. On November 25, Semtech reported quarterly earnings that exceeded analyst expectations — the company posted earnings per share (EPS) of $0.26, beating the forecast of $0.23 by $0.03. Revenue for that quarter was $236.80 million, exceeding the anticipated $232.89 million and increasing by 17.9% compared to the previous year.

Insider Activity at Semtech

In recent insider trading, COO Asaf Silberstein sold 2,000 shares at an average price of $70.00, totaling $140,000. Following this sale, he still owns 76,417 shares worth approximately $5.35 million. Additionally, SVP Imran Sherazi sold 1,338 shares for $100,350 at an average price of $75.00, reducing his holding to just 14 shares valued at $1,050. In total, insiders have sold 16,747 shares for around $1.1 million in the past 90 days, with corporate insiders holding about 0.60% of Semtech’s stock.

Institutional Trading of Semtech

Recent activity among large investors indicates a growing interest in Semtech. Huntington National Bank increased its stake in the company by 105.2% in the third quarter, now owning 589 shares valued at $27,000 after acquiring an additional 302 shares. GAMMA Investing LLC raised its holdings by 15.3%, now owning 3,166 shares valued at $196,000 following a purchase of 421 shares. Other institutions like Hanseatic Management Services and Smartleaf Asset Management have also adjusted their positions, reflecting varied strategies in coping with market conditions.

About Semtech

Semtech Corporation specializes in designing, developing, manufacturing, and marketing analog and mixed-signal semiconductor products alongside advanced algorithms. The company offers a range of signal integrity products, integrated circuits for data centers and networking, and video technology including video-over-IP solutions.

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