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

Semtech Co. (NASDAQ:SMTC) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $38.16, but opened at $40.50. Semtech shares last traded at $38.46, with a volume of 904,380 shares.

The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.01. Semtech had a negative net margin of 129.52% and a negative return on equity of 154.99%. The company had revenue of $215.40 million for the quarter, compared to analysts’ expectations of $212.30 million. During the same period in the prior year, the business earned ($0.06) EPS. The firm’s quarterly revenue was down 9.6% on a year-over-year basis.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SMTC. Piper Sandler restated an “overweight” rating and set a $60.00 price objective (up from $40.00) on shares of Semtech in a research note on Wednesday, May 29th. Stifel Nicolaus increased their price target on shares of Semtech from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Wednesday. Northland Securities lifted their price objective on shares of Semtech from $36.50 to $46.00 and gave the stock an “outperform” rating in a research report on Thursday, June 6th. B. Riley boosted their price objective on shares of Semtech from $58.00 to $61.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Susquehanna raised their target price on shares of Semtech from $45.00 to $55.00 and gave the company a “positive” rating in a research note on Thursday, June 6th. Three research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $50.00.

Hedge Funds Weigh In On Semtech

Hedge funds have recently made changes to their positions in the company. Fidelis Capital Partners LLC acquired a new stake in Semtech during the 1st quarter worth about $27,000. Ridgewood Investments LLC purchased a new position in shares of Semtech in the second quarter worth about $44,000. GAMMA Investing LLC lifted its holdings in shares of Semtech by 83.9% during the first quarter. GAMMA Investing LLC now owns 1,694 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 773 shares during the period. Versant Capital Management Inc boosted its position in Semtech by 205.0% in the first quarter. Versant Capital Management Inc now owns 1,873 shares of the semiconductor company’s stock valued at $51,000 after buying an additional 1,259 shares during the last quarter. Finally, Canada Pension Plan Investment Board acquired a new position in Semtech in the 2nd quarter worth approximately $60,000.

Semtech Stock Performance

The company’s fifty day moving average is $32.52 and its two-hundred day moving average is $31.28. The company has a market cap of $2.45 billion, a price-to-earnings ratio of -2.29 and a beta of 1.55.

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.