Semtech (NASDAQ:SMTC) Shares Gap Up After Better-Than-Expected Earnings

Semtech Co. (NASDAQ:SMTC) shares gapped up prior to trading 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.

The semiconductor company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03. The firm had revenue of $236.80 million during the quarter, compared to the consensus estimate of $232.89 million. Semtech had a negative return on equity of 154.99% and a negative net margin of 107.21%. The firm’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.02 earnings per share.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Craig Hallum lifted their price target on shares of Semtech from $48.00 to $70.00 and gave the company a “buy” rating in a research report on Tuesday. Northland Securities increased their price target on Semtech from $46.00 to $60.00 and gave the company an “outperform” rating in a report on Tuesday. B. Riley boosted their price objective on Semtech from $61.00 to $85.00 and gave the stock a “buy” rating in a research note on Tuesday. Summit Insights lowered Semtech from a “buy” rating to a “hold” rating in a research note on Wednesday, August 28th. Finally, Roth Mkm upped their price target on Semtech from $50.00 to $60.00 and gave the stock a “buy” rating in a report on Monday. Three analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $67.70.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Geode Capital Management LLC lifted its stake in Semtech by 8.0% during the third quarter. Geode Capital Management LLC now owns 1,617,783 shares of the semiconductor company’s stock worth $73,883,000 after purchasing an additional 119,572 shares during the last quarter. Disciplined Growth Investors Inc. MN boosted its stake in Semtech by 4.6% in the third quarter. Disciplined Growth Investors Inc. MN now owns 2,609,984 shares of the semiconductor company’s stock valued at $119,172,000 after acquiring an additional 114,999 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in shares of Semtech during the 3rd quarter worth approximately $763,000. Wellington Management Group LLP bought a new position in Semtech during the 3rd quarter worth $10,556,000. Finally, Whale Rock Capital Management LLC acquired a new position in shares of Semtech during the third quarter valued at $32,126,000.

Semtech Trading Up 18.1 %

The stock has a market capitalization of $4.75 billion, a P/E ratio of -4.66 and a beta of 1.54. The company’s 50-day moving average is $45.83 and its two-hundred day moving average is $38.96.

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.