Semtech (NASDAQ:SMTC) Shares Gap Up Following Strong Earnings

Semtech Co. (NASDAQ:SMTC) gapped up before the market opened on Tuesday following a stronger than expected earnings report. 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 traded.

The semiconductor company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03. The business had revenue of $236.80 million during the quarter, compared to analyst estimates of $232.89 million. Semtech had a negative net margin of 99.08% and a negative return on equity of 154.99%. Semtech’s revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.02 EPS.

Analysts Set New Price Targets

A number of analysts recently weighed in on SMTC shares. Piper Sandler reaffirmed an “overweight” rating and set a $75.00 target price (up previously from $60.00) on shares of Semtech in a report on Tuesday. Northland Securities upped their target price on Semtech from $46.00 to $60.00 and gave the stock an “outperform” rating in a research note on Tuesday. Benchmark lifted their price objective on Semtech from $56.00 to $82.00 and gave the stock a “buy” rating in a report on Tuesday. Stifel Nicolaus increased their target price on Semtech from $58.00 to $65.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $70.00 price objective (up previously from $50.00) on shares of Semtech in a research report on Tuesday. Three equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, Semtech presently has an average rating of “Moderate Buy” and a consensus price target of $67.70.

Institutional Trading of Semtech

Large investors have recently added to or reduced their stakes in the stock. Huntington National Bank boosted its position in Semtech by 105.2% during the 3rd quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 302 shares in the last quarter. NBC Securities Inc. lifted its stake in shares of Semtech by 115.8% in the 3rd quarter. NBC Securities Inc. now owns 1,377 shares of the semiconductor company’s stock valued at $62,000 after purchasing an additional 739 shares during the period. Ridgewood Investments LLC bought a new stake in shares of Semtech during the second quarter valued at approximately $44,000. International Assets Investment Management LLC grew its stake in Semtech by 4,464.9% in the third quarter. International Assets Investment Management LLC now owns 1,689 shares of the semiconductor company’s stock worth $77,000 after purchasing an additional 1,652 shares during the period. Finally, Canada Pension Plan Investment Board bought a new position in Semtech in the second quarter worth $60,000.

Semtech Price Performance

The firm has a market cap of $4.83 billion, a PE ratio of -4.86 and a beta of 1.54. The firm has a 50-day simple moving average of $46.24 and a 200 day simple moving average of $39.12.

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.