Semtech stock: buy or sell?

SMTC stock price: $46.67 -1.66% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Semtech declined an awful -1.66% and closed at $46.67. With Friday it's been 5 sliding days in a row, loosing $-2.22 (-4.60%).

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. The company provides signal integrity products, including a portfolio of optical communications, broadcast video, and backplane products used in various enterprise computing, industrial, communications, and high-end consumer applications; and a portfolio of integrated circuits for optical transceivers, backplane, and high-speed interface applications.

Should I buy Semtech stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Semtech stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean SMTC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Semtech stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we gathered 9 ratings published for SMTC stock in the last month.

The general sentiment of these ratings is bullish for SMTC stock, with 8 positive ratings.
Is SMTC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Cowenn/aOutperform
2019-8-29Wells Fargo & Con/aOutperform
2019-8-29Stifel Nicolausn/aBuy
2019-8-29B. Rileyn/aBuy
2019-5-30Oppenheimern/aOutperform
2019-3-18Loop Capitaln/aBuy
2019-3-14Roth CapitalBuyNeutral
2019-3-14B. RileyBuyBuy
2019-2-27B. RileyBuyBuy

Semtech stock analysis

Daily outlook

Shares of Semtech ended today at $46.67 and declined an awful -1.66%.

Semtech declined an awful -1.66% and closed at $46.67. Since last August when SMTC stock price broke down the SMA200d line, it slid $-3.06 per share (-6.15%).

SMTC stock chart (daily)

Weekly outlook

After boosting an extraordinary 8.59% in a week last week, Semtech closed this week at $46.67 and fell a horrible -4.54%. Late July SMTC plunged a dreadful -11.80% in just one week.

Semtech is in a glaring downtrend, marking successive declining peaks and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level.

SMTC stock chart (weekly)

Semtech stock price history

Semtech stock went public on March 17th, 1980 with a price of $1.091. Since then, SMTC stock surged a 4,181.70%, with a yearly average of 107.20%. If you had invested $1,000 in Semtech stock in 1980, it would worth $41,817.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Semtech stock historical price chart

SMTC stock reached all-time highs with a price of $60.55.

Semtech stock price target is $56.60

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 8 price forecasts for SMTC stock released in the last 30 days:
SMTC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9CowenLowers Target$56.00$54.00-3.6%
2019-8-29Wells Fargo & CoReiterates$65.00$60.00-7.7%
2019-8-29Stifel NicolausReiterates$55.00$50.00-9.1%
2019-8-29B. RileyReiterates$60.00$55.00-8.3%
2019-5-30OppenheimerLowers Target$60.00$52.00-13.3%
2019-3-14Roth CapitalDowngradesn/a$49.00-
2019-3-14B. RileyLowers Target$68.00$65.00-4.4%
2019-2-27B. RileyRaises Target$61.00$68.0011.5%
(in average)$60.70$56.60-7.0%
The price forecast for Semtech stock is $56.60, moving in a range between $68.00 and $49.00. In average, analysts' outlook on SMTC price target is negative, reducing the prediction by a -7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Semtech missed the estimates of the analysts and reported an ugly EPS of $0.37 per share when experts were expecting $0.39.
SMTC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.18n/a
2017-Q3-n/a0.19n/a
2017-Q42018-03-140.410.422.4%
2018-Q12018-03-140.260.3846.2%
2018-Q22018-05-300.210.18-14.3%
2018-Q32018-08-290.260.3742.3%
2018-Q42018-11-280.460.58.7%
2019-Q12019-03-130.390.37-5.1%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2019, Semtech annual revenues jumped an excellent 6.69% to $627.20 million dollars from $587.85 marked in 2018. In the same way, its income margin (compared to revenues) grew to 10.05%, that is $63.06 million.

SMTC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$595 M-$-164.47 M-27.6%-
2014$558 M-6.23%$28 M5.0%-116.99%
2015$558 M0.00%$28 M5.0%-0.01%
2015$490 M-12.13%$12 M2.3%-58.85%
2016$490 M0.00%$11 M2.3%-0.03%
2016$544 M11.03%$55 M10.0%375.43%
2017$544 M0.00%$55 M10.0%0.00%
2017$588 M8.01%$36 M6.2%-33.35%
2018$588 M0.00%$36 M6.2%-0.01%
2019$627 M6.69%$63 M10.1%73.11%

Quarterly financial results

Semtech reported $160.01 M in revenues for 2019-Q1, a -7.80% less compared to previous quarter. Reported quarter earnings marked $13.34 M with a profit margin of 8.34%. Profit margin appreciated a 1.33% compared to previous quarter when profit margin was 7.01%. When comparing sales to same quarter last year, Semtech sales marked an exceptional increase and rocketed a 13.79%.
SMTC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$144 M-$12 M8.2%-
2017-Q3$153 M6.49%$13 M8.2%6.26%
2017-Q4$150 M-1.85%$13 M8.9%6.19%
2018-Q1$141 M-6.45%$-1 M-0.9%-109.72%
2018-Q2$130 M-7.24%$12 M9.5%-1,054.66%
2018-Q3$163 M25.13%$25 M15.4%103.27%
2018-Q4$174 M6.33%$12 M7.0%-51.67%
2019-Q1$160 M-7.80%$13 M8.3%9.66%

Semtech ownership

When you are planning to buy shares of a stock, it's always worth to check its ownership structure.

Semtech shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.09% of all shares.

Bearish positions for SMTC stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

SMTCADIIPHIMCHPMPWR
Market cap$3.1 B$42.6 B$2.9 B$22.0 B$6.7 B
Total shares66.5 M369.4 M45.4 M238.0 M43.2 M
Float shares65.4 M367.9 M44.7 M232.7 M40.3 M
  - Institutional holdings (%)100.0%92.5%118.0%117.6%100.4%
  - Insider holdings (%)2.1%0.3%2.0%2.2%3.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Semtech summary

Friday, September 20th, 2019
Open$47.51
Close$46.67
Day range$46.38 - $47.83
Previous close$47.46
Session gain-1.66%
Average true range$1.55
50d mov avg$47.15
100d mov avg$46.84
200d mov avg$48.93
Daily pattern
Weekly pattern lt02a

Semtech performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Semtech against Analog Devices, Inphi, Microchip Technology, Monolithic Power Systems, Maxim Integrated Products, ON Semiconductor, Silicon Laboratories and Texas Instruments in the following table:
Stock3m6m12m
SMTCSemtech0.76%-11.84%-18.55%
ADIAnalog Devices1.97%8.53%24.56%
IPHIInphi26.95%47.58%73.15%
MCHPMicrochip Technol...9.13%9.20%13.74%
MPWRMonolithic Power ...20.12%11.13%17.37%
MXIMMaxim Integrated ...1.04%9.84%1.72%
ONON Semiconductor-0.82%-10.72%0.89%
SLABSilicon Laborator...15.65%39.03%19.06%
TXNTexas Instruments13.45%16.94%18.46%

Semtech competitors

We selected a few stocks to conform a list of Semtech competitors to watch if you are interested in investing in SMTC: