UBS Group Initiates Coverage on Semtech with Positive Outlook

UBS Group has officially begun covering Semtech Corporation (NASDAQ:SMTC) as of Friday, as reported in a research note sent to investors. They have assigned a "buy" rating to the semiconductor company's stock and set a target price of $85.00. This target indicates a potential upside of approximately 23.31% based on Semtech's stock performance before the report.

Recent Analyst Ratings

Several other market research firms have also recently published their evaluations of Semtech. On November 26th, Benchmark raised their price target from $56.00 to $82.00, giving the stock a "buy" rating. Similarly, B. Riley increased their target from $61.00 to $85.00, also rating it a "buy." On November 21st, Susquehanna adjusted their target price from $55.00 to $60.00 with a "positive" rating, while Stifel Nicolaus increased theirs from $65.00 to $75.00, maintaining a "buy" rating as of January 6th. Lastly, Needham & Company LLC boosted their target from $70.00 to $74.00 on December 12th, labeling the stock with a "buy" rating as well. Analysts now show significant optimism with three rating the stock a hold, while eleven have opted for a buy, leading to a consensus rating of "Moderate Buy" with an average price target of $71.09.

Semtech's Stock Performance

Semtech's shares opened at $68.93 on Friday. The company has a market capitalization of $5.22 billion and a price-to-earnings ratio of -5.28, with a beta of 1.65. Its fifty-day moving average stands at $61.24, while the 200-day moving average is at $46.76. Over the past year, Semtech's stock has fluctuated considerably, with a low of $18.16 and a high of $73.96.

Recent Earnings Report

The latest quarterly earnings report for Semtech was announced on November 25th. The company reported earnings per share (EPS) of $0.26, which exceeded analysts' expectations of $0.23 by $0.03. In terms of revenue, Semtech generated $236.80 million, surpassing the consensus estimate of $232.89 million. However, the firm still reported a negative return on equity of 154.99% and a net margin of -99.08%. Year-over-year, the company's revenue increased by 17.9%, with the previous year's earnings reported at $0.02 per share.

Insider Trading Activity

In related news, Semtech's Chief Financial Officer Mark Lin sold 1,359 shares on January 3rd at an average price of $65.15, amounting to a total of $88,538.85. After this transaction, he holds 4,164 shares which are now valued at $271,284.60, marking a 24.61% decrease in his ownership. Additionally, Senior Vice President Imran Sherazi sold 2,946 shares on December 19th at an average price of $63.30, totaling $186,481.80, which also indicates a significant decrease in ownership. Over the past ninety days, insiders have sold a total of 10,419 shares valued at $676,955, with only 0.60% of shares currently held by company insiders.

Institutional Investment Changes

Recently, several institutional investors have adjusted their stakes in Semtech. Huntington National Bank increased their holdings by 105.2% during the third quarter, owning now 589 shares worth $27,000 after acquiring an additional 302 shares. GAMMA Investing LLC raised their position by 15.3% in the fourth quarter, and now controls 3,166 shares worth $196,000 after buying an additional 421 shares. Other notable changes include Hanseatic Management Services Inc., Creative Planning, and Mutual of America Capital Management LLC, all increasing their stakes in Semtech.

About Semtech Corporation

Semtech Corporation focuses on the design, development, and marketing of analog and mixed-signal semiconductors and advanced algorithms. Their product offerings include solutions for signal integrity, video transport, and integrated circuits for applications in data centers and network systems.

Semtech, Stock, UBS