Semtech Corporation (NASDAQ:SMTC) shares traded higher over the last trading session, gaining 1.33% on 05/20/21. The shares fell to a low of $60.81 before closing at $62.30. Intraday shares traded counted 0.81 million, which was -137.41% lower than its 30-day average trading volume of 340.99K. SMTC’s previous close was $61.48 while the outstanding shares total 65.02M. The firm has a beta of 1.65, a 12-month trailing P/E ratio of 68.69, and a growth ratio of 3.43. The stock’s Relative Strength Index (RSI) is 42.71, with weekly volatility at 3.68% and ATR at 2.41. The SMTC stock’s 52-week price range has touched low of $45.98 and a $83.94 high.
Investors have identified the Semiconductors company Semtech Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.99 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Semtech Corporation (SMTC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 474.73 million total, with 109.57 million as their total liabilities.
SMTC were able to record 86.2 million as free cash flow during the 09/01/2021 quarter of the year, this saw their quarterly net cash flow reduce by -24.43 million. In cash movements, the company had a total of 118.93 million as operating cash flow.
Potential earnings growth for Semtech Corporation (SMTC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/01/2021 quarter of the year, Semtech Corporation recorded a total of 164.67 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 16.2% coming in sequential stages and their sales for the 09/01/2021 quarter increasing by 6.43%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 64.2 million trying to sell their products during the last quarter, with the result yielding a gross income of 100.48 million. This allows shareholders to hold on to 65.02M with the recently reported earning now reading 0.24 cents per share. This is a figure that compared to analyst’s prediction for their 09/01/2021 (0.31 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.49 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SMTC sounds very interesting.
Is the stock of SMTC attractive?
In related news, EVP, WILSON JOHN MICHAEL sold 5,000 shares of the company’s stock in a transaction that recorded on Apr 15. The sale was performed at an average price of 70.13, for a total value of 350,648. As the sale deal closes, the SVP, Chang Christopher H now sold 4,830 shares of the company’s stock, valued at 347,581. Also, SVP, Chang Christopher H sold 7,670 shares of the company’s stock in a deal that was recorded on Mar 22. The shares were price at an average price of 73.73 per share, with a total market value of 565,511. Following this completion of acquisition, the EVP and CFO, CHUKWU EMEKA now holds 3,000 shares of the company’s stock, valued at 230,243. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.70%.
7 out of 10 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Semtech Corporation. 0 analysts has assigned a Sell rating on the SMTC stock. The 12-month mean consensus price target for the company’s shares has been set at $83.40.