Timing, Fundamentals, and Diversification of Semtech Corporation (SMTC)

Semtech Corporation (NASDAQ: SMTC) closed the day trading at $32.53 up 3.27% from the previous closing price of $31.50. In other words, the price has increased by $+1.03 from its previous closing price. On the day, 1101747 shares were traded. SMTC stock price reached its highest trading level at $32.56 during the session, while it also had its lowest trading level at $31.52.

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For a better understanding of SMTC, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 3.26 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 12.13. For the most recent quarter (mrq), Quick Ratio is recorded 5.20 and its Current Ratio is at 6.00. In the meantime, Its Debt-to-Equity ratio is 0.57 whereas as Long-Term Debt/Eq ratio is at 0.57.

Upgrades & Downgrades

On September 01, 2022, Cowen Downgraded its rating to Market Perform which previously was Outperform and also lowered its target price recommendation from $65 to $43.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Jun 07 when Silberstein Asaf sold 1,971 shares for $62.60 per share. The transaction valued at 123,385 led to the insider holds 59,000 shares of the business.

WILSON JOHN MICHAEL sold 9,000 shares of SMTC for $560,521 on Apr 07. The EVP now owns 16,385 shares after completing the transaction at $62.28 per share. On Apr 04, another insider, Rodensky Michael W, who serves as the SVP of the company, sold 4,000 shares for $68.79 each. As a result, the insider received 275,168 and left with 10,138 shares of the company.

Valuation Measures:

As of this moment, Semtech’s Price-to-Earnings (P/E) ratio for their current fiscal year is 14.24, and their Forward P/E ratio for the next fiscal year is 14.37. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.24. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.58 while its Price-to-Book (P/B) ratio in mrq is 2.62.

Stock Price History:

Over the past 52 weeks, SMTC has reached a high of $77.00, while it has fallen to a 52-week low of $25.29. The 50-Day Moving Average of the stock is 29.42, while the 200-Day Moving Average is calculated to be 43.93.

Shares Statistics:

Over the past 3-months, SMTC traded about 1.25M shares per day on average, while over the past 10 days, SMTC traded about 1.17M shares per day. A total of 63.76M shares are outstanding, with a floating share count of 63.14M. Insiders hold about 0.10% of the company’s shares, while institutions hold 99.00% stake in the company. Shares short for SMTC as of Oct 13, 2022 were 4.22M with a Short Ratio of 5.68M, compared to 1.53M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 6.64% and a Short% of Float of 8.53%.

Earnings Estimates

Current recommendations for the stock of the company come from 10 analysts. On average, analysts expect EPS of $0.63 for the current quarter, with a high estimate of $0.64 and a low estimate of $0.63, while EPS last year was $0.74. The consensus estimate for the next quarter is $0.54, with high estimates of $0.61 and low estimates of $0.34.

Analysts are recommending an EPS of between $2.91 and $2.64 for the fiscal current year, implying an average EPS of $2.84. EPS for the following year is $2.83, with 10 analysts recommending between $3.79 and $1.6.

Revenue Estimates

A total of 9 analysts have provided revenue estimates for SMTC’s current fiscal year. The highest revenue estimate was $763.8M, while the lowest revenue estimate was $744M, resulting in an average revenue estimate of $753.27M. In the same quarter a year ago, actual revenue was $740.86M, up 1.70% from the average estimate. Based on 9 analysts’ estimates, the company’s revenue will be $748.36M in the next fiscal year. The high estimate is $793.9M and the low estimate is $684.14M. The average revenue growth estimate for next year is down -0.70% from the average revenue estimate for this year.