Semtech (NASDAQ:SMTC) Shares Down 5.7% on Insider Selling

Shares of Semtech Corporation (NASDAQ:SMTC) were down 5.7% during trading on Wednesday following insider selling activity. The company traded as low as $71.26 and last traded at $71.6650. Approximately 436,367 shares changed hands during trading, a decline of 65% from the average daily volume of 1,231,690 shares. The stock had previously closed at $75.98.

Specifically, Director Gregory Michael Fischer sold 1,034 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $75.50, for a total value of $78,067.00. Following the sale, the director directly owned 2,857 shares of the company’s stock, valued at approximately $215,703.50. This trade represents a 26.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider John Michael Wilson sold 5,000 shares of the stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $75.12, for a total value of $375,600.00. Following the transaction, the insider owned 60,066 shares in the company, valued at $4,512,157.92. This trade represents a 7.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In related news, Director Saar Gillai sold 3,600 shares of the business’s stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $75.26, for a total value of $270,936.00. Following the completion of the sale, the director owned 9,523 shares of the company’s stock, valued at approximately $716,700.98. The trade was a 27.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

Several research firms have issued reports on SMTC. Susquehanna increased their price objective on shares of Semtech from $65.00 to $80.00 and gave the company a “positive” rating in a report on Tuesday, November 18th. Morgan Stanley set a $67.00 price target on shares of Semtech in a research note on Tuesday, November 25th. B. Riley lifted their price objective on Semtech from $90.00 to $91.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. TD Cowen started coverage on Semtech in a research note on Wednesday, October 1st. They set a “buy” rating and a $75.00 price objective for the company. Finally, Cowen assumed coverage on Semtech in a research report on Tuesday, September 30th. They issued a “buy” rating on the stock. Fifteen equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $78.50.

Semtech Price Performance

The firm has a market capitalization of $7.15 billion, a PE ratio of 249.23 and a beta of 2.01. The stock’s 50 day simple moving average is $73.30 and its two-hundred day simple moving average is $63.52. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.71 and a current ratio of 2.43.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Monday, November 24th. The semiconductor company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.45 by $0.03. The firm had revenue of $266.97 million during the quarter, compared to analysts’ expectations of $266.36 million. Semtech had a return on equity of 17.00% and a net margin of 2.77%.The business’s revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.26 earnings per share. Semtech has set its Q4 2026 guidance at 0.400-0.460 EPS. On average, sell-side analysts forecast that Semtech Corporation will post -0.02 EPS for the current year.

Institutional Investors Weigh In On Semtech

A number of hedge funds have recently modified their holdings of SMTC. Bessemer Group Inc. increased its holdings in shares of Semtech by 78.4% during the 2nd quarter. Bessemer Group Inc. now owns 653 shares of the semiconductor company’s stock worth $29,000 after buying an additional 287 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in Semtech during the second quarter worth $33,000. Hantz Financial Services Inc. raised its position in Semtech by 243.2% in the third quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company’s stock valued at $36,000 after purchasing an additional 360 shares during the period. Salomon & Ludwin LLC purchased a new stake in Semtech in the third quarter valued at $41,000. Finally, AlphaQuest LLC lifted its stake in shares of Semtech by 42.5% in the 3rd quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company’s stock valued at $41,000 after purchasing an additional 173 shares during the last quarter.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.