The stock of Semtech Corporation (NASDAQ:SMTC) decreased by -$0.69 on Friday to finish at $25.35, down -2.65 percent. The last five days have seen an average of 660,040 shares of common stock traded. 12 times new highs were reached in the current year, with a fall of -$3.34. The average number of shares traded over the last 20 days was 852,110, while the average volume over the last 50 days totaled 1,511,586.
SMTC stock dropped -13.04% since last month. On 08/11/23, the company’s shares reached a one-month low of $25.20. The stock touched a high of $55.14 on 02/02/23, after rallying from a low of $17.82 in 52 weeks. The price of SMTC stock has declined by -11.64% or -$3.34 this year, reaching a new high 12 times. Still, the stock price is down -54.03% from the 52-week high.
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Valuation Metrics
Beta for the stock is 1.70. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.11, the price-to-book (PB) ratio of 2.21.
Financial Health
For the three months ended April 29, Semtech Corporation’s quick ratio was 1.50, while its current ratio was 2.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 1.82, and the total debt to equity ratio is 1.88. As far as profitability goes, gross margin for the trailing twelve months is 57.20% percent. Semtech Corporation’s EBITDA margin for the year ended April 29 was 25.89%, whereas its operating margin stood at 3.20% for the same period. Based on annual data, it had gross profit of $478.56 million and revenue of $756.53 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SMTC’s return on assets (ROA) during the last 12 months has been -0.30%. There was a 3.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -0.80%.
Earnings Surprise
According to Semtech Corporation’s quarterly financial report for the quarter that ended April 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $236.54 million, while revenues rose by 14.54% to $151.84 million. It was predicted that Semtech Corporation’s quarterly earnings would be $0.02, but it ended up being -$0.08, beating the consensus by 125.00%. EBITDA was $15.69 million for the quarter. At the end of Semtech Corporation’s most recent quarter ended April 29, its liabilities totaled 1.77 billion, while its total debt was $1.42 billion. Equity owned by shareholders amounts to $63.96 million.
Technical Picture
Here’s a quick look at Semtech Corporation’s (SMTC) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 28.22%, suggesting the stock is oversold, with a 23.37% historical volatility rate.
The stochastic %K and %D were 3.98% and 9.66% respectively, while the average true range (ATR) was 0.89. Based on the 14-day stochastic reading of 3.55%, the RSI (14) reading is 38.65%. On the 9-day MACD Oscillator, the stock is at -1.07, and the 14-day reading is at -1.49.
Analyst Ratings
In its analyst report released on June 21, 2023, Craig Hallum began covering Semtech Corporation (NASDAQ: SMTC). The stock was rated as a Buy by the brokerage firm. Analysts have assigned Semtech Corporation (SMTC) an Overweight rating. SMTC is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 7 others recommend it as a buy.
What is SMTC’s price target for the next 12 months?
The current consensus forecast for the stock is between $28.00 and $56.00, with a median target price of $37.50. In analyzing these forecasts, the average price target given by analysts for Semtech Corporation (SMTC) is $39.00.
