Is Semtech Stock a Good Investment?
Semtech Investment Advice | SMTC |
- Examine Semtech's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Semtech's leadership team and their track record. Good management can help Semtech navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Semtech's business and its evolving consumer preferences.
- Compare Semtech's performance and market position to its competitors. Analyze how Semtech is positioned in terms of product offerings, innovation, and market share.
- Check if Semtech pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Semtech's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Semtech stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Semtech is a good investment.
Sell | Buy |
Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Semtech Stock
Researching Semtech's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.69. Semtech recorded a loss per share of 13.58. The entity last dividend was issued on the 5th of September 1980. The firm had 2:1 split on the 26th of September 2000.
To determine if Semtech is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Semtech's research are outlined below:
| Semtech appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 868.76 M. Net Loss for the year was (1.09 B) with profit before overhead, payroll, taxes, and interest of 484.22 M. | |
| Semtech currently holds about 376.07 M in cash with (93.92 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.92. | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from benzinga.com: Whats Going On With Semtech Shares Tuesday |
Semtech Quarterly Good Will |
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Semtech uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Semtech. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Semtech's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 3rd of April 2024 Upcoming Quarterly Report | View | |
| 5th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 3rd of April 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Semtech's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Semtech's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-08-26 | 2003-07-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2003-02-25 | 2003-01-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2001-11-19 | 2001-10-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2001-08-21 | 2001-07-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1999-08-24 | 1999-07-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1999-05-25 | 1999-04-30 | 0.07 | 0.08 | 0.01 | 14 | ||
1999-02-23 | 1999-01-31 | 0.06 | 0.07 | 0.01 | 16 | ||
1998-05-26 | 1998-04-30 | 0.07 | 0.08 | 0.01 | 14 |
Know Semtech's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Semtech is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Semtech backward and forwards among themselves. Semtech's institutional investor refers to the entity that pools money to purchase Semtech's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Neuberger Berman Group Llc | 2024-06-30 | 1.7 M | Geode Capital Management, Llc | 2024-09-30 | 1.6 M | Driehaus Capital Management Llc | 2024-06-30 | 1.5 M | Fmr Inc | 2024-09-30 | 1.4 M | Kodai Capital Management Lp | 2024-09-30 | 1.1 M | Two Sigma Advisers, Llc | 2024-06-30 | 1.1 M | Bank Of America Corp | 2024-06-30 | 1.1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.1 M | Fisher Asset Management, Llc | 2024-09-30 | 1 M | Vanguard Group Inc | 2024-09-30 | 10.2 M | Blackrock Inc | 2024-06-30 | 10.2 M |
Semtech's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.75 B.Market Cap |
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Semtech's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (1.37) | 0.08 | |
| Return On Capital Employed | (0.82) | 0.08 | |
| Return On Assets | (0.79) | 0.06 | |
| Return On Equity | 3.55 | 0.09 |
Determining Semtech's profitability involves analyzing its financial statements and using various financial metrics to determine if Semtech is a good buy. For example, gross profit margin measures Semtech's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Semtech's profitability and make more informed investment decisions.
Please note, the presentation of Semtech's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Semtech's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Semtech's management manipulating its earnings.
Evaluate Semtech's management efficiency
At present, Semtech's Return On Capital Employed is projected to slightly decrease based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.06, whereas Return On Equity is forecasted to decline to 0.09. At present, Semtech's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 33.7 M, whereas Total Current Assets are forecasted to decline to about 287.8 M. Semtech's management efficiency ratios could be used to measure how well Semtech manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (4.79) | 10.72 | |
| Tangible Book Value Per Share | (13.79) | 5.15 | |
| Enterprise Value Over EBITDA | (3.10) | 47.53 | |
| Price Book Value Ratio | (4.45) | 6.94 | |
| Enterprise Value Multiple | (3.10) | 47.53 | |
| Price Fair Value | (4.45) | 6.94 | |
| Enterprise Value | 2.6 B | 8.2 M |
Understanding the operational decisions made by Semtech management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 1.541 |
Basic technical analysis of Semtech Stock
As of the 28th of November, Semtech has the Semi Deviation of 2.84, risk adjusted performance of 0.1718, and Coefficient Of Variation of 467.18. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Semtech, as well as the relationship between them.Semtech's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Semtech insiders, such as employees or executives, is commonly permitted as long as it does not rely on Semtech's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Semtech insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Semtech's Outstanding Corporate Bonds
Semtech issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Semtech uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Semtech bonds can be classified according to their maturity, which is the date when Semtech has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| SEMPRA ENERGY 6 Corp BondUS816851AP42 | View | |
| SRE 37 01 APR 29 Corp BondUS816851BP33 | View | |
| SRE 33 01 APR 25 Corp BondUS816851BN84 | View | |
| SRE 4125 01 APR 52 Corp BondUS816851BM02 | View | |
| SRE 4875 Corp BondUS816851BK46 | View | |
| SEMPRA ENERGY 4 Corp BondUS816851BJ72 | View | |
| SEMPRA ENERGY 38 Corp BondUS816851BH17 | View | |
| SEMPRA ENERGY 34 Corp BondUS816851BG34 | View |
Understand Semtech's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Semtech's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1718 | |||
| Market Risk Adjusted Performance | 0.6398 | |||
| Mean Deviation | 3.14 | |||
| Semi Deviation | 2.84 | |||
| Downside Deviation | 3.29 | |||
| Coefficient Of Variation | 467.18 | |||
| Standard Deviation | 4.18 | |||
| Variance | 17.46 | |||
| Information Ratio | 0.1828 | |||
| Jensen Alpha | 0.7153 | |||
| Total Risk Alpha | 0.2263 | |||
| Sortino Ratio | 0.2325 | |||
| Treynor Ratio | 0.6298 | |||
| Maximum Drawdown | 19.03 | |||
| Value At Risk | (5.66) | |||
| Potential Upside | 6.2 | |||
| Downside Variance | 10.8 | |||
| Semi Variance | 8.07 | |||
| Expected Short fall | (3.79) | |||
| Skewness | 0.9837 | |||
| Kurtosis | 3.6 |
| Risk Adjusted Performance | 0.1718 | |||
| Market Risk Adjusted Performance | 0.6398 | |||
| Mean Deviation | 3.14 | |||
| Semi Deviation | 2.84 | |||
| Downside Deviation | 3.29 | |||
| Coefficient Of Variation | 467.18 | |||
| Standard Deviation | 4.18 | |||
| Variance | 17.46 | |||
| Information Ratio | 0.1828 | |||
| Jensen Alpha | 0.7153 | |||
| Total Risk Alpha | 0.2263 | |||
| Sortino Ratio | 0.2325 | |||
| Treynor Ratio | 0.6298 | |||
| Maximum Drawdown | 19.03 | |||
| Value At Risk | (5.66) | |||
| Potential Upside | 6.2 | |||
| Downside Variance | 10.8 | |||
| Semi Variance | 8.07 | |||
| Expected Short fall | (3.79) | |||
| Skewness | 0.9837 | |||
| Kurtosis | 3.6 |
Consider Semtech's intraday indicators
Semtech intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Semtech stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Semtech Corporate Filings
8K | 25th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 15th of November 2024 Other Reports | ViewVerify | |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Semtech Stock media impact
Far too much social signal, news, headlines, and media speculation about Semtech that are available to investors today. That information is available publicly through Semtech media outlets and privately through word of mouth or via Semtech internal channels. However, regardless of the origin, that massive amount of Semtech data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Semtech news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Semtech relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Semtech's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Semtech alpha.
Semtech Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Semtech can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Semtech Historical Investor Sentiment
Investor biases related to Semtech's public news can be used to forecast risks associated with an investment in Semtech. The trend in average sentiment can be used to explain how an investor holding Semtech can time the market purely based on public headlines and social activities around Semtech. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Semtech's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Semtech and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Semtech news discussions. The higher the estimate score, the more favorable the investor's outlook on Semtech.
Semtech Corporate Management
| Gary Beauchamp | Executive VP and General Manager of Signal Integrity Product Group | Profile | |
| Charles Ammann | Executive VP, General Counsel and Secretary | Profile | |
| Michael Rodensky | Senior Sales | Profile | |
| Tom Mueller | Executive Group | Profile | |
| Madhusudhan Rayabhari | MixedSignal Analog | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Semtech. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Semtech Stock refer to our How to Trade Semtech Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Semtech. If investors know Semtech will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Semtech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.33) | Earnings Share (13.58) | Revenue Per Share 12.622 | Quarterly Revenue Growth (0.1) | Return On Assets 0.001 |
The market value of Semtech is measured differently than its book value, which is the value of Semtech that is recorded on the company's balance sheet. Investors also form their own opinion of Semtech's value that differs from its market value or its book value, called intrinsic value, which is Semtech's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Semtech's market value can be influenced by many factors that don't directly affect Semtech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Semtech's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Semtech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Semtech's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.