Semtech Corporation (NASDAQ: SMTC) stock fell -0.79% on Friday to $24.98 against a previous-day closing price of $25.18. With 4.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.27 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $25.95 whereas the lowest price it dropped to was $24.73. The 52-week range on SMTC shows that it touched its highest point at $35.18 and its lowest point at $17.82 during that stretch. It currently has a 1-year price target of $34.90. Beta for the stock currently stands at 1.69.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SMTC was up-trending over the past week, with a rise of 3.18%, but this was down by -0.16% over a month. Three-month performance surged to 10.53% while six-month performance fell -15.92%. The stock lost -23.66% in the past year, while it has lost -12.93% so far this year. A look at the trailing 12-month EPS for SMTC yields -6.87 with Next year EPS estimates of 0.93. For the next quarter, that number is -0.08. This implies an EPS growth rate of -50.00% for this year and 868.75% for next year. EPS is expected to grow by 11.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -8.10%.
Float and Shares Shorts:
At present, 64.00 million SMTC shares are outstanding with a float of 62.98 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.34 million, which was 11.48% higher than short shares on Jul 30, 2023. In addition to Mr. Emeka N. Chukwu as the firm’s Exec. VP & CFO, Mr. Asaf Silberstein serves as its Exec. VP & COO.
Institutional Ownership:
Through their ownership of 106.30% of SMTC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.58% of SMTC, in contrast to 5.67% held by mutual funds. Shares owned by individuals account for 47.72%. As the largest shareholder in SMTC with 15.06% of the stake, BlackRock Fund Advisors holds 9,634,364 shares worth 9,634,364. A second-largest stockholder of SMTC, The Vanguard Group, Inc., holds 8,472,148 shares, controlling over 13.25% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SMTC, holding 4,382,903 shares or 6.85% stake. With a 7.04% stake in SMTC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,505,469 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 5.69% of SMTC stock, is the second-largest Mutual Fund holder. It holds 3,640,646 shares valued at 95.2 million. SPDR S&P Semiconductor ETF holds 3.13% of the stake in SMTC, owning 2,002,237 shares worth 52.36 million.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SMTC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SMTC analysts setting a high price target of $49.00 and a low target of $30.00, the average target price over the next 12 months is $35.67. Based on these targets, SMTC could surge 96.16% to reach the target high and rise by 20.1% to reach the target low. Reaching the average price target will result in a growth of 42.79% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded SMTC stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 3,350 shares were bought while 1,160 shares were sold. The number of buy transactions has increased to 39 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 178,088 while 62,466 shares were sold.
