Semtech Corporation (SMTC) Stock: Why It’s Climbing

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Semtech Corporation (SMTC) is trending up in the market in today’s trading session. The company, focused in the technology space, is presently trading at $54.87 after heading up 5.56% so far today. When it comes to technology stocks, there are quite a few factors that have the potential to generate price movement in the market. News is one of the most common reasons for movement. Here are the recent headlines surrounding SMTC:

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Mar-14-19 04:24PM Facebook, Dollar General slump while MongoDB rallies
04:15PM Edited Transcript of SMTC earnings conference call or presentation 13-Mar-19 9:00pm GMT
09:59AM Semtech Drops as Chipmaker Surprises With Weak Outlook
09:32AM [$$] Stocks to Watch: GE, Dollar General, Boeing, Tesla, Apple, Roku
08:23AM Dow Jones Futures: Two Big Earnings Movers After Intel, Arista Networks Break Out

Nonetheless, any time investors are making an investing decision, investors should focus on much more than news, especially in the ever (changing|evolving) tech industry. Here’s what’s going on with Semtech Corporation.

Performance Trends That We’ve Seen From SMTC

Although a move toward the top in a single session, like what we’re seeing from Semtech Corporation might make some investors excited, that alone shouldn’t be the reason for a decision to, or not to, invest in a company. It is generally smart to dig into trends experienced by the stock for a period longer than a single session. When it comes to SMTC, below are the trends that we’ve seen:

  • Past 7 Days – In the last five trading sessions, SMTC has generated a change in price that amounts to 4.24%.
  • Past Month – The performance from Semtech Corporation throughout the last month works out to 5.74%.
  • Past 3 Months – Over the last 3 months, the stock has produced a return that works out to 13.79%
  • Bi-Annually – In the last six months, investors have seen a change that amounts to -6.76% from the stock.
  • This Year So Far – Since the close of last year SMTC has resulted in a return on investment of 19.62%.
  • Full Year – Finally, throughout the past full year, we’ve seen a change that works out to 57.22% from SMTC. Throughout this period, the stock has sold at a high of -9.38% and a low price of 45.93%.

Ratios To Watch

Digging into various key ratios associated with a company can give traders a view of just how dangerous and/or rewarding a stock pick may be. Here are some of the key ratios to think about when digging into SMTC.

Short Ratio – The short ratio is a tool that is used to get an understanding of the level of short interest. As the short ratio heads up, it shows that more investors have a belief that the price of the stock is headed for declines. Throughout the sector, strong tech stocks can come with a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, with regard to Semtech Corporation, the stock’s short ratio is 3.10.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure whether or not a company can cover its debts when they come due based on quick assets or current assets. Because in tech, many companies rely heavily on the continuation of investor support as they work to bring new technologies to market, these ratios can be upsetting. Nonetheless, several gems in the tech industry do have strong quick and current ratios. As it relates to SMTC, the quick and current ratios come to 3.50 and 4.00 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 10.50.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value comes to 4.73.

Is Big Money Interested in Semtech Corporation?

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in SMTC, here’s what we’re seeing:

  • Institutions – At the moment, institutions own 0 of SMTC. On the other hand, it is important to mention that institutional ownership has changed in the amount of -2.70% throughout the past 3 months.
  • Investors On The Inside – When it comes to insiders, insiders of the company currently own 1.60% of Semtech Corporation. Insider ownership of the company has seen a move of -22.58% over the last quarter.

What Analysts Think About Semtech Corporation

Although it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to use their opinions to validate your own thoughts before making an investment decision in the technology sector. Below are|Here are} the most recent moves that we’ve seen from analysts as it relates to SMTC.

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Mar-14-19 Downgrade ROTH Capital Buy → Neutral
Dec-07-18 Initiated Susquehanna Neutral $54
Nov-29-18 Reiterated B. Riley FBR Buy $58 → $61
Sep-04-18 Downgrade Needham Buy → Hold
Aug-30-18 Reiterated Needham Buy $55 → $60

What We’ve Seen In earnings results

What have ween seen from SMTC in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – At the moment, analysts are expecting that SMTC will come up with EPS that comes to 2.40, with 0.36 being reported in the earnings announcement for the current quarter. Although this isn’t earnings driven, since we’re talking on the topic of Wall Street analysts, Semtech Corporation is presently graded as a 2.00 considering a scale that ranges from 1 to 5 where 1 is the worst average Wall St. analyst grade and 5 is the best rating.
  • 5-Year Sales – Over the last half decade, Semtech Corporation has generated a change in revenue that comes to a total of 0.30%. Earnings through the past half decade have experienced a change of 19.10%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is often explained in the human world, Semtech Corporation has experienced a change in earnings that amounts to -44.80%. The company has also experienced a change in regard to sales that amounts to 15.50%.

What’s Going On With Share Counts?

Investors tend to like to know the total numbers of shares both available and outstanding. As it relates to Semtech Corporation, currently there are 66.01M and there is a float of 64.51M. This means that of the total of 66.01M shares of SMTC that are out there today, 64.51M are available to trade hands on the public market.

I also like to look at the short float. After all, if a large percentage of the float available for trading is sold short, the overall opinion among traders is that the equity is headed for a steep decline. In regard to SMTC, the percentage of the float that is shorted is 2.55%. Most investors would say that a high short percent of the float is anything over 40%. In my research, I have calculated that any short ratio over 26% is likely a play that comes with hefty risk.

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