Semtech Story

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SMTC -- USA Stock  

USD 82.82  0.59  0.72%

In general, we focus on analyzing Semtech (NASDAQ:SMTC) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Semtech daily price indicators and compare them against related drivers. Let's try to go over what's happening with Semtech amid unprecedented political, and economic uncertainty.
Published over a month ago
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Will Semtech continue to grow in January?
The company's average rating is Buy from 10 analysts. Macroaxis provides unbiased trade recommendation on Semtech that should be used to complement current analysts and expert consensus on Semtech. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
The successful prediction of Semtech stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Semtech, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Semtech based on Semtech hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Semtech's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Semtech's related companies.

Use Technical Analysis to project Semtech expected Price

Semtech technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Semtech technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Semtech trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Semtech, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Emeka Chukwu of 3000 shares of Semtech subject to Rule 16b-3

Legal trades by Semtech insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Semtech insider trading alert for exercise of option (right to buy) by Emeka Chukwu, EVP and CFO, on 20th of January 2021. This event was filed by Semtech Corp with SEC on 2021-01-20. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Semtech Investor Appetite?

Semtech reported the previous year's revenue of 555.37 M. Net Income was 42.69 M with profit before overhead, payroll, taxes, and interest of 336.68 M.

Deferred Revenue Breakdown

Semtech Deferred Revenue is increasing over the years with slightly volatile fluctuation. Ongoing Deferred Revenue is projected to grow to about 8.4 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Semtech Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 7.77 Million
20101.69 Million
20115.85 Million
20158.63 Million
20197.77 Million
20208.38 Million

Semtech may start a relapse in January

Variance is down to 5.91. It may suggest a possible volatility slip. Semtech currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.17. However, we do advice investors to further question Semtech expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Semtech

Whereas many other companies within the semiconductors industry are still a little expensive, even after the recent corrections, Semtech may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Semtech valuation and our trade advice on Semtech is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Semtech.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Semtech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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