Investors Purchase High Volume of Put Options on Semtech (NASDAQ:SMTC)

Semtech Corporation (NASDAQ:SMTC) saw some unusual options trading on Friday. Investors acquired 6,027 put options on the stock. This represents an increase of 51% compared to the typical volume of 3,981 put options.

Analysts Set New Price Targets

Several analysts recently issued reports on SMTC shares. Craig Hallum upped their price target on shares of Semtech from $105.00 to $205.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. Susquehanna boosted their target price on shares of Semtech from $170.00 to $200.00 and gave the stock a “positive” rating in a research report on Wednesday, May 27th. Oppenheimer set a $200.00 target price on shares of Semtech in a research note on Wednesday, May 27th. Needham & Company LLC reaffirmed a “buy” rating and set a $200.00 price target on shares of Semtech in a research report on Monday, July 13th. Finally, Roth Capital lifted their price target on Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $189.07.

Insider Buying and Selling at Semtech

In related news, CEO Hong Q. Hou sold 2,000 shares of the business’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer owned 64,799 shares in the company, valued at approximately $8,618,267. The trade was a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total value of $1,086,300.00. Following the sale, the chief operating officer owned 96,862 shares of the company’s stock, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 22,234 shares of company stock valued at $3,203,091. Company insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SMTC. Think Investments LP bought a new stake in shares of Semtech during the third quarter valued at approximately $58,618,000. Ameriprise Financial Inc. raised its stake in Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock valued at $321,040,000 after acquiring an additional 666,456 shares in the last quarter. Atreides Management LP bought a new stake in Semtech during the 2nd quarter valued at $29,880,000. Assenagon Asset Management S.A. boosted its position in Semtech by 323.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock worth $60,051,000 after acquiring an additional 596,373 shares during the period. Finally, Capital International Investors acquired a new position in Semtech during the 4th quarter worth $39,593,000.

Semtech Trading Down 9.2%

NASDAQ:SMTC opened at $125.92 on Friday. The firm has a market capitalization of $11.73 billion, a P/E ratio of -322.87 and a beta of 2.31. The business has a 50 day simple moving average of $149.03 and a 200 day simple moving average of $110.52. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. Semtech has a 12-month low of $46.02 and a 12-month high of $177.35.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The firm had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same period last year, the company earned $0.38 earnings per share. The firm’s revenue for the quarter was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Equities research analysts predict that Semtech will post 1.81 EPS for the current year.

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.