Semtech (NASDAQ:SMTC) Experiences Significant Trading Volume Increase - Is It Time to Buy?

Shares of Semtech Corporation (NASDAQ:SMTC) experienced a notable increase in trading volume recently. On Friday, approximately 1,485,199 shares changed hands, which represents a 19% decrease from the prior session's volume of 1,832,163 shares. The stock was last seen trading at $65.20, slightly down from its previous closing price of $65.38.

Changes in Analyst Ratings

Several equity research analysts have recently made comments regarding the shares of Semtech. Craig Hallum raised their target price for Semtech from $48.00 to $70.00 and assigned a "buy" rating in a report dated November 26th. Susquehanna also increased their target from $55.00 to $60.00, assigning a "positive" rating on November 21st. Stifel Nicolaus set their target at $65.00 after raising it from $58.00, and gave the stock a "buy" rating on November 26th. Additionally, B. Riley raised their target price from $61.00 to $85.00 while maintaining a "buy" rating on the same day. Piper Sandler reiterated an "overweight" rating and revised their target price upwards from $60.00 to $75.00 on November 26th. As of now, three analysts have issued a hold rating, and ten have given a buy rating. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target set at $67.70.

Semtech Stock Performance

Semtech shares have seen a minor increase of 0.8%. The company has a market capitalization of $4.96 billion, a price-to-earnings ratio of -5.09, and a beta of 1.65. Currently, its fifty-day and two-hundred-day moving averages stand at $48.87 and $40.38, respectively.

Recent Earnings Results

On November 25th, Semtech released its quarterly earnings report, showcasing earnings per share (EPS) of $0.26 for the quarter, which exceeded the consensus estimate of $0.23 by $0.03. However, the company reported a negative net margin of 99.08% and a negative return on equity of 154.99%. The revenue for the quarter was reported at $236.80 million, surpassing the consensus estimate of $232.89 million. This represents a year-over-year revenue increase of 17.9%. Analysts predict that Semtech will post an EPS of -0.02 for the current fiscal year.

Institutional Activity

Recent trading activity among institutional investors shows that hedge funds have been buying and selling Semtech shares. Geode Capital Management LLC increased its stake by 8.0% during the third quarter, owning 1,617,783 shares worth $73,883,000 after acquiring an additional 119,572 shares. Disciplined Growth Investors Inc. MN enhanced its position by 4.6%, owning 2,609,984 shares valued at $119,172,000 after buying an extra 114,999 shares. Y Intercept Hong Kong Ltd also purchased shares in the third quarter valued at $763,000, while Wellington Management Group LLP acquired new shares worth $10,556,000. Whale Rock Capital Management LLC also invested approximately $32,126,000 in the company during the same period.

About Semtech Corporation

Semtech Corporation specializes in the design, development, manufacture, and marketing of analog and mixed-signal semiconductors and advanced algorithms. The company provides a diverse range of products including signal integrity solutions, optical data communications, and video transport solutions for various infrastructure and industrial applications. It also manufactures integrated circuits for data centers, enterprise networks, passive optical networks, and high-speed interface applications.

Investing Insights

Before considering an investment in Semtech, it's essential to research and evaluate various options. Despite Semtech's current rating of "Moderate Buy", analysts suggest examining other potential stocks that may present better investment opportunities.

Overall, as Semtech's trading activity increases, potential investors should closely monitor the stock and consider expert opinions before making investment decisions.

Semtech, Stocks, Trading