Semtech Stock Story

SMTC
 Stock
  

USD 55.74  1.14  2.09%   

While some of us are becoming more passionate about technology space, it makes sense to go over Semtech Corp in greater detail. We will evaluate why recent Semtech Corp price moves suggest a bounce in July. This post is to show some fundamental factors affecting Semtech Corp's products and services. I will also drop some light on how it may impact the investing outlook for Semtech Corp in July.
Published over two months ago
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Wild options for Semtech Corp investors

Over 96.0% of Semtech Corp shares are owned by institutional investors. Institutional ownership of Semtech Corp refers to the amount of Semtech Corp equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Semtech, including its current ownership diagnostics.

How important is Semtech Corp's Liquidity

Semtech Corp financial leverage refers to using borrowed capital as a funding source to finance Semtech Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Semtech Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Semtech Corp's total debt and its cash.

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 Corp, but it might be worth checking our own buy vs. sell analysis

Acquisition by Burvill Martin of 1731 shares of Semtech Corp subject to Rule 16b-3

Legal trades by Semtech Corp 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 grant of restricted stock unit by Burvill Martin, Board of Directors, on 5th of July 2022. This event was filed by Semtech Corp with SEC on 2022-07-05. 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.

Detailed Perspective On Semtech Corp

Semtech Corp maintains a total of 64.44 Million outstanding shares. The majority of Semtech Corp outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Semtech Corp to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Semtech Corp. Please pay attention to any change in the institutional holdings of Semtech Corp as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Ownership Breakdown

Institutions
96.49%
Retail Investors2.27
Insiders1.24
Institutions96.49

Some Semtech technical indicators suggest correction

Current maximum drawdown is at 11.47. Semtech Corp exhibits very low volatility with skewness of -0.11 and kurtosis of -0.97. However, we advise investors to further study Semtech Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Semtech Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Semtech Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Semtech Corp Implied Volatility

Semtech Corp's implied volatility exposes the market's sentiment of Semtech Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Semtech Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Semtech Corp stock will not fluctuate a lot when Semtech Corp's options are near their expiration.

The Bottom Line

Whereas other companies within the semiconductors industry are still a little expensive, even after the recent corrections, Semtech Corp may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of Semtech Corp at this time. The Semtech Corp risk-reward trade off is not appealing enough to do any trading. 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 Corp.

Editorial Staff

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 Vlad Skutelnik do not own shares of Semtech Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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