Roth Capital's Positive Forecast for Semtech's FY2025 Earnings
The investment firm Roth Capital has raised its earnings per share (EPS) estimates for Semtech Corporation (NASDAQ:SMTC) for the fiscal year 2025. In a report made public on November 25th, Roth Capital analyst S. Searle now predicts that Semtech will achieve earnings of $0.02 per share, an increase from the prior forecast of a loss of $0.01 per share. This new estimate differs from the current consensus anticipation of Semtech's annual earnings, which is projected to be a loss of $0.07 per share.
On the same day, Semtech announced its quarterly earnings, reporting an EPS of $0.26 for the recent quarter. This performance exceeded analysts' expectations, which had estimated the company would earn $0.23 per share. Semtech's total revenue for the quarter reached $236.80 million, surpassing the consensus estimate of $232.89 million. However, the company displayed a significant negative return on equity of 154.99% and a negative net margin of 99.08%. In comparison to the same quarter in the previous year, Semtech's revenue increased by 17.9%. Last year during this quarter, the company reported an EPS of $0.02.
In addition to Roth Capital's optimistic view, several other equity analysts have recently evaluated Semtech's stock. Needham & Company LLC reaffirmed their "buy" rating for Semtech, raising their price target from $50.00 to $70.00. Roth Mkm also increased their target price for Semtech from $50.00 to $60.00, maintaining a "buy" rating. Furthermore, B. Riley raised their price target on the stock from $61.00 to $85.00, while Stifel Nicolaus adjusted theirs from $58.00 to $65.00, maintaining a "buy" recommendation. Susquehanna also lifted their price target from $55.00 to $60.00, giving Semtech a "positive" rating. Currently, three analysts have issued a hold rating, while ten have a buy rating for the company, resulting in a consensus rating of "Moderate Buy" with an average price target of $67.70 according to MarketBeat.com.
Current Stock Performance of Semtech
As of Thursday, Semtech's stock opened at $64.04. The stock has experienced a 52-week low of $15.63 and a high of $66.64. Semtech's market capitalization stands at $4.82 billion, operating with a P/E ratio of -4.83 and a beta of 1.54. Notably, the company's 50-day moving average price is $47.00, while the 200-day moving average is $39.47.
Institutional Trading Activity
Recent activities by institutional investors show increased interest in Semtech's stock. Disciplined Growth Investors Inc. MN raised its holdings in Semtech by an impressive 343.3% during the second quarter, now owning 2,494,985 shares worth approximately $74.55 million after acquiring an additional 1,932,116 shares. Driehaus Capital Management LLC also entered a new position in Semtech amounting to around $43.40 million. Millennium Management LLC increased their stake in the company by 26.6% during the same quarter and now possesses 3,646,449 shares valued at approximately $108.96 million after acquiring 765,877 additional shares. Whale Rock Capital Management LLC also initiated a new position in Semtech in the third quarter worth about $32.13 million. Additionally, Clearline Capital LP grew its position by 143.1% in the second quarter, holding 899,021 shares worth approximately $26.86 million.
Overview of Semtech Corporation
Semtech Corporation specializes in designing, developing, manufacturing, and marketing analog and mixed-signal semiconductors, as well as advanced algorithms. The company offers a range of signal integrity products, including optical data communications and video transport products used in numerous infrastructure and industrial applications. Their product portfolio comprises integrated circuits for data centers, enterprise networks, passive optical networks, wireless base stations, and high-speed interface applications, along with broadcasting products and video-over-IP technology for professional audio-video applications.
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