Semtech (NASDAQ:SMTC) Shares Gap Down – Here’s Why

Semtech Co. (NASDAQ:SMTC)’s share price gapped down prior to trading on Monday . The stock had previously closed at $73.02, but opened at $65.50. Semtech shares last traded at $59.37, with a volume of 1,542,880 shares.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on SMTC shares. Craig Hallum upped their price target on shares of Semtech from $48.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. UBS Group began coverage on Semtech in a report on Friday, January 17th. They issued a “buy” rating and a $85.00 price objective for the company. Stifel Nicolaus lifted their target price on Semtech from $65.00 to $75.00 and gave the stock a “buy” rating in a report on Monday, January 6th. Needham & Company LLC raised their price objective on shares of Semtech from $70.00 to $74.00 and gave the stock a “buy” rating in a report on Thursday, December 12th. Finally, Benchmark raised their price target on shares of Semtech from $56.00 to $82.00 and gave the stock a “buy” rating in a research note on Tuesday, November 26th. Three analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat, Semtech has an average rating of “Moderate Buy” and an average price target of $71.09.

Semtech Stock Down 22.8 %

The stock has a 50 day moving average price of $64.42 and a two-hundred day moving average price of $48.74. The company has a market cap of $4.27 billion, a P/E ratio of -4.34 and a beta of 1.65.

Semtech (NASDAQ:SMTC) last announced its earnings results on Monday, November 25th. The semiconductor company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.23 by $0.03. The company had revenue of $236.80 million for the quarter, compared to analysts’ expectations of $232.89 million. Semtech had a negative net margin of 99.08% and a negative return on equity of 154.99%. The business’s revenue for the quarter was up 17.9% on a year-over-year basis. During the same period last year, the firm earned $0.02 earnings per share.

Insider Activity at Semtech

In other Semtech news, SVP Imran Sherazi sold 1,338 shares of Semtech stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $75.00, for a total value of $100,350.00. Following the completion of the sale, the senior vice president now directly owns 14 shares in the company, valued at approximately $1,050. The trade was a 98.96 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mark Lin sold 6,114 shares of the company’s stock in a transaction dated Tuesday, December 17th. The stock was sold at an average price of $65.74, for a total transaction of $401,934.36. Following the completion of the sale, the chief financial officer now owns 3,531 shares in the company, valued at $232,127.94. This represents a 63.39 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 13,757 shares of company stock valued at $917,305 in the last 90 days. 0.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Huntington National Bank boosted its holdings in shares of Semtech by 105.2% in the 3rd quarter. Huntington National Bank now owns 589 shares of the semiconductor company’s stock worth $27,000 after buying an additional 302 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in shares of Semtech in the second quarter worth about $60,000. NBC Securities Inc. lifted its stake in shares of Semtech by 115.8% during the 3rd quarter. NBC Securities Inc. now owns 1,377 shares of the semiconductor company’s stock valued at $62,000 after buying an additional 739 shares in the last quarter. Quarry LP purchased a new position in Semtech in the 2nd quarter valued at approximately $63,000. Finally, International Assets Investment Management LLC lifted its position in shares of Semtech by 4,464.9% during the third quarter. International Assets Investment Management LLC now owns 1,689 shares of the semiconductor company’s stock worth $77,000 after acquiring an additional 1,652 shares in the last quarter.

About Semtech

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.