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

Semtech Co. (NASDAQ:SMTC)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $32.71, but opened at $37.26. Semtech shares last traded at $37.51, with a volume of 2,130,062 shares trading hands.

The semiconductor company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.08. The firm had revenue of $251.00 million during the quarter, compared to analyst estimates of $249.40 million. The business’s quarterly revenue was up 30.1% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.06) earnings per share.

Analysts Set New Price Targets

Several equities research analysts have commented on SMTC shares. Benchmark decreased their target price on shares of Semtech from $82.00 to $68.00 and set a “buy” rating on the stock in a research report on Friday. Robert W. Baird decreased their price objective on shares of Semtech from $80.00 to $60.00 and set an “outperform” rating on the stock in a research report on Friday, February 7th. Craig Hallum decreased their price objective on shares of Semtech from $70.00 to $55.00 and set a “buy” rating on the stock in a research report on Friday. Susquehanna boosted their price objective on shares of Semtech from $55.00 to $60.00 and gave the stock a “positive” rating in a research report on Thursday, November 21st. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $54.00 price objective on shares of Semtech in a research report on Friday. Three analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $61.55.

Insider Activity

In other Semtech news, CFO Mark Lin sold 10,890 shares of the company’s stock in a transaction that occurred on Thursday, March 6th. The stock was sold at an average price of $34.68, for a total value of $377,665.20. Following the completion of the transaction, the chief financial officer now owns 11,625 shares in the company, valued at $403,155. This represents a 48.37 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Imran Sherazi sold 2,946 shares of the company’s stock in a transaction that occurred on Thursday, December 19th. The stock was sold at an average price of $63.30, for a total value of $186,481.80. Following the completion of the transaction, the senior vice president now owns 6,317 shares of the company’s stock, valued at approximately $399,866.10. This represents a 31.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 27,637 shares of company stock valued at $1,472,726 in the last 90 days. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Semtech

Several institutional investors and hedge funds have recently made changes to their positions in the business. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Semtech during the 4th quarter valued at approximately $15,131,000. Jefferies Financial Group Inc. boosted its stake in shares of Semtech by 62.0% during the 4th quarter. Jefferies Financial Group Inc. now owns 77,659 shares of the semiconductor company’s stock valued at $4,803,000 after buying an additional 29,723 shares during the last quarter. Mackenzie Financial Corp boosted its stake in shares of Semtech by 44.2% during the 4th quarter. Mackenzie Financial Corp now owns 39,824 shares of the semiconductor company’s stock valued at $2,463,000 after buying an additional 12,211 shares during the last quarter. Castleark Management LLC purchased a new position in shares of Semtech during the 4th quarter valued at approximately $7,555,000. Finally, Whale Rock Capital Management LLC boosted its stake in shares of Semtech by 364.2% during the 4th quarter. Whale Rock Capital Management LLC now owns 3,266,202 shares of the semiconductor company’s stock valued at $202,015,000 after buying an additional 2,562,602 shares during the last quarter.

Semtech Stock Performance

The company has a 50 day moving average price of $51.73 and a 200 day moving average price of $51.23. The company has a market capitalization of $3.00 billion, a PE ratio of -3.03, a PEG ratio of 2.12 and a beta of 1.69.

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.