Semtech (SMTC) Reaches New 12-Month Low Following Analyst Downgrade

Shares of Semtech Co. (NASDAQ:SMTC) hit a new 52-week low during trading on Thursday after ValuEngine downgraded the stock from a buy rating to a hold rating. The company traded as low as $41.09 and last traded at $41.38, with a volume of 388151 shares traded. The stock had previously closed at $44.15.

Several other brokerages have also recently issued reports on SMTC. BidaskClub raised Semtech from a “hold” rating to a “buy” rating in a report on Wednesday, February 27th. Zacks Investment Research cut Semtech from a “hold” rating to a “strong sell” rating in a report on Tuesday, March 19th. B. Riley boosted their price objective on Semtech from $61.00 to $68.00 and gave the company a “buy” rating in a report on Wednesday, February 27th. Loop Capital raised Semtech to a “buy” rating in a report on Monday, March 18th. Finally, Roth Capital cut Semtech from a “buy” rating to a “neutral” rating and set a $49.00 price objective for the company. in a report on Thursday, March 14th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $56.54.

In related news, VP Mark C. Costello sold 18,609 shares of the company’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $54.10, for a total value of $1,006,746.90. Following the completion of the transaction, the vice president now owns 25,142 shares of the company’s stock, valued at approximately $1,360,182.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Emeka Chukwu sold 1,100 shares of the company’s stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $53.86, for a total value of $59,246.00. Following the completion of the transaction, the chief financial officer now directly owns 127,886 shares of the company’s stock, valued at approximately $6,887,939.96. The disclosure for this sale can be found here. Insiders sold a total of 117,514 shares of company stock valued at $6,331,074 in the last ninety days. 1.96% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. LS Investment Advisors LLC raised its holdings in Semtech by 4.6% in the 1st quarter. LS Investment Advisors LLC now owns 4,370 shares of the semiconductor company’s stock worth $222,000 after purchasing an additional 192 shares during the period. Strs Ohio raised its holdings in Semtech by 2.8% in the 1st quarter. Strs Ohio now owns 7,300 shares of the semiconductor company’s stock worth $371,000 after purchasing an additional 200 shares during the period. State of Tennessee Treasury Department raised its holdings in Semtech by 0.5% in the 1st quarter. State of Tennessee Treasury Department now owns 45,363 shares of the semiconductor company’s stock worth $2,309,000 after purchasing an additional 217 shares during the period. Avitas Wealth Management LLC raised its holdings in Semtech by 0.6% in the 1st quarter. Avitas Wealth Management LLC now owns 36,965 shares of the semiconductor company’s stock worth $1,882,000 after purchasing an additional 223 shares during the period. Finally, Redmond Asset Management LLC raised its holdings in Semtech by 1.8% in the 1st quarter. Redmond Asset Management LLC now owns 14,900 shares of the semiconductor company’s stock worth $759,000 after purchasing an additional 267 shares during the period. 96.49% of the stock is owned by institutional investors.

The company has a quick ratio of 3.25, a current ratio of 3.74 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $2.73 billion, a P/E ratio of 30.83, a P/E/G ratio of 3.04 and a beta of 1.65.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings data on Wednesday, May 29th. The semiconductor company reported $0.34 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.18 by $0.16. Semtech had a return on equity of 13.94% and a net margin of 10.05%. The company had revenue of $131.40 million during the quarter, compared to analyst estimates of $130.40 million. During the same period in the previous year, the business earned $0.47 EPS. Semtech’s quarterly revenue was down 13.5% on a year-over-year basis. On average, analysts expect that Semtech Co. will post 1.19 EPS for the current year.

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About Semtech (NASDAQ:SMTC)

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, and communications 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.

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