Semtech (NASDAQ:SMTC) Shares Gap Up on Earnings Beat

Semtech Co. (NASDAQ:SMTC) shares gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $53.44, but opened at $63.50. Semtech shares last traded at $60.71, with a volume of 1,030,703 shares.

The semiconductor company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03. The business had revenue of $236.80 million for the quarter, compared to analysts’ expectations of $232.89 million. Semtech had a negative return on equity of 154.99% and a negative net margin of 107.21%. The business’s quarterly revenue was up 17.9% on a year-over-year basis. During the same period last year, the firm earned $0.02 earnings per share.

Analyst Upgrades and Downgrades

A number of research firms have commented on SMTC. Craig Hallum raised their price target on Semtech from $48.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday. Benchmark reaffirmed a “buy” rating and issued a $56.00 price objective on shares of Semtech in a research note on Monday, October 7th. Northland Securities increased their target price on Semtech from $46.00 to $60.00 and gave the company an “outperform” rating in a research report on Tuesday. Piper Sandler restated an “overweight” rating and issued a $75.00 price target (up previously from $60.00) on shares of Semtech in a research report on Tuesday. Finally, Summit Insights cut shares of Semtech from a “buy” rating to a “hold” rating in a research report on Wednesday, August 28th. Three analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $62.70.

Institutional Trading of Semtech

A number of hedge funds have recently added to or reduced their stakes in the business. Huntington National Bank lifted its stake in Semtech by 105.2% in the third quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 302 shares during the period. Arizona State Retirement System raised its position in Semtech by 2.3% during the 2nd quarter. Arizona State Retirement System now owns 18,074 shares of the semiconductor company’s stock worth $540,000 after buying an additional 407 shares during the last quarter. Hanseatic Management Services Inc. boosted its holdings in Semtech by 3.2% in the third quarter. Hanseatic Management Services Inc. now owns 14,406 shares of the semiconductor company’s stock valued at $658,000 after purchasing an additional 447 shares during the last quarter. Nisa Investment Advisors LLC raised its stake in shares of Semtech by 6.9% during the 2nd quarter. Nisa Investment Advisors LLC now owns 7,159 shares of the semiconductor company’s stock valued at $214,000 after buying an additional 461 shares during the last quarter. Finally, Creative Planning raised its stake in shares of Semtech by 3.4% during the 2nd quarter. Creative Planning now owns 18,018 shares of the semiconductor company’s stock valued at $538,000 after buying an additional 588 shares during the last quarter.

Semtech Stock Performance

The stock has a 50 day simple moving average of $45.83 and a two-hundred day simple moving average of $38.96. The firm has a market cap of $4.57 billion, a PE ratio of -4.48 and a beta of 1.54.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.