Needham slashes price target on Semtech Corporation [SMTC] – find out why.

Semtech Corporation [NASDAQ: SMTC] jumped around 0.15 points on Wednesday, while shares priced at $22.87 at the close of the session, up 0.66%. The company report on September 13, 2023 at 4:15 PM that Semtech Announces Second Quarter of Fiscal Year 2024 Results.

Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its second quarter of fiscal year 2024, which ended July 30, 2023.

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Semtech Corporation stock is now -20.29% down from its year-to-date (YTD) trading value. SMTC Stock saw the intraday high of $22.955 and lowest of $22.04 per share. The company’s 52-week high price is 35.18, which means current price is +28.34% above from all time high which was touched on 02/02/23.

Compared to the average trading volume of 1.13M shares, SMTC reached a trading volume of 3119118 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Semtech Corporation [SMTC]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SMTC shares is $38.64 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SMTC stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Needham have made an estimate for Semtech Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 06, 2023.

The Average True Range (ATR) for Semtech Corporation is set at 1.00, with the Price to Sales ratio for SMTC stock in the period of the last 12 months amounting to 1.88. The Price to Book ratio for the last quarter was 1.99, with the Price to Cash per share for the same quarter was set at 2.52.

How has SMTC stock performed recently?

Semtech Corporation [SMTC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.66. With this latest performance, SMTC shares dropped by -10.14% in over the last four-week period, additionally sinking by -23.99% over the last 6 months – not to mention a drop of -34.28% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SMTC stock in for the last two-week period is set at 32.95, with the RSI for the last a single of trading hit 27.78, and the three-weeks RSI is set at 37.33 for Semtech Corporation [SMTC]. The present Moving Average for the last 50 days of trading for this stock 26.46, while it was recorded at 23.56 for the last single week of trading, and 26.72 for the last 200 days.

Semtech Corporation [SMTC]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Semtech Corporation [SMTC] shares currently have an operating margin of +21.02 and a Gross Margin at +63.31. Semtech Corporation’s Net Margin is presently recorded at +8.11.

Return on Total Capital for SMTC is now 10.44, given the latest momentum, and Return on Invested Capital for the company is 4.10. Return on Equity for this stock inclined to 8.22, with Return on Assets sitting at 3.32. When it comes to the capital structure of this company, Semtech Corporation [SMTC] has a Total Debt to Total Equity ratio set at 181.62. Additionally, SMTC Total Debt to Total Capital is recorded at 64.49, with Total Debt to Total Assets ending up at 53.42. Long-Term Debt to Equity for the company is recorded at 175.09, with the Long-Term Debt to Total Capital now at 62.17.

Reflecting on the efficiency of the workforce at the company, Semtech Corporation [SMTC] managed to generate an average of $27,304 per employee. Receivables Turnover for the company is 6.16 with a Total Asset Turnover recorded at a value of 0.41.Semtech Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 2.10.

Earnings analysis for Semtech Corporation [SMTC]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SMTC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Semtech Corporation go to 11.50%.

Insider trade positions for Semtech Corporation [SMTC]

The top three institutional holders of SMTC stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in SMTC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in SMTC stock with ownership which is approximately 5.7381%.

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