Semtech stock: buy or sell?
September 20th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-29||Wells Fargo & Co||n/a||Outperform|
Semtech stock analysis
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%).
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.
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 $56.60How 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-29||Wells Fargo & Co||Reiterates||$65.00||$60.00||-7.7%|
|2019-3-14||B. Riley||Lowers Target||$68.00||$65.00||-4.4%|
|2019-2-27||B. Riley||Raises Target||$61.00||$68.00||11.5%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, Semtech missed the estimates of the analysts and reported an ugly EPS of $0.37 per share when experts were expecting $0.39.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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.
|2014||$595 M||-||$-164.47 M-27.6%||-|
|2014||$558 M||-6.23%||$28 M5.0%||-116.99%|
|2015||$558 M||0.00%||$28 M5.0%||-0.01%|
|2015||$490 M||-12.13%||$12 M2.3%||-58.85%|
|2016||$490 M||0.00%||$11 M2.3%||-0.03%|
|2016||$544 M||11.03%||$55 M10.0%||375.43%|
|2017||$544 M||0.00%||$55 M10.0%||0.00%|
|2017||$588 M||8.01%||$36 M6.2%||-33.35%|
|2018||$588 M||0.00%||$36 M6.2%||-0.01%|
|2019||$627 M||6.69%||$63 M10.1%||73.11%|
Quarterly financial resultsSemtech 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%.
|2017-Q2||$144 M||-||$12 M8.2%||-|
|2017-Q3||$153 M||6.49%||$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 M||25.13%||$25 M15.4%||103.27%|
|2018-Q4||$174 M||6.33%||$12 M7.0%||-51.67%|
|2019-Q1||$160 M||-7.80%||$13 M8.3%||9.66%|
Semtech ownershipWhen 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:
|Market cap||$3.1 B||$42.6 B||$2.9 B||$22.0 B||$6.7 B|
|Total shares||66.5 M||369.4 M||45.4 M||238.0 M||43.2 M|
|Float shares||65.4 M||367.9 M||44.7 M||232.7 M||40.3 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$46.38 - $47.83|
|Average true range||$1.55|
|50d mov avg||$47.15|
|100d mov avg||$46.84|
|200d mov avg||$48.93|
Semtech performancePerformance 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:
|MPWRMonolithic Power ...||20.12%||11.13%||17.37%|
|MXIMMaxim Integrated ...||1.04%||9.84%||1.72%|