Shares of Semtech Corporation (NASDAQ:SMTC) recorded -6.34% loss during trading session on March 14th, 2019. The script traded as low as $51.1 and last traded at $51.98. 2.44 million shares changed exchanged hands during trading, a drop of -493304.74% from the 30-day average session volume of 494.84K shares. The firm had previously closed at $55.50. The company has $67.12M outstanding shares, a price-to-earnings ratio of 38.45, price-to-earnings-growth ratio of 5.74and a beta of 1.67. The company has a RSI of 44.01, ATR of 1.74 and a volatility of 4.22% this week. SMTC has a 52 week low price of $34.65 and a 52 week high price of $60.55.
Investors have identified the tech 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 3.49B, 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. For SMTC, the company has in raw cash 312.24 million on their books with 60.86 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
SMTC were able to record 123.44 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 4.31 million. In cash movements, the company had a total of 136.37 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 third quarter of the year, Semtech Corporation recorded a total of 173.55 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.13% coming in sequential stages and their sales for the third quarter increasing by 0.06%.
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 66.99 million trying to sell their products during the last quarter, with the result yielding a gross income of 106.56 million. This allows shareholders to hold on to 67.12M with the revenue now reading 180 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.45 cents a share).
Is the stock of SMTC attractive?
In related news, EVP and CFO CHUKWU EMEKA sold 1,100 shares of the company’s stock in a transaction that recorded on February 28th, 2019. The sale was performed at an average price of 54.97, for a total value of 60,468. As the sale deal closes, the SVP CHUKWU EMEKA now sold 2,500 shares of the company’s stock, valued at 143,424. Also, SVP KIM JAMES JUNGSUP sold 2,500 shares of the company’s stock in a deal that was recorded on February 15th, 2019. The shares were sold at an average price of 53.00 per share, with a total market value of 36,225. Following this completion of acquisition, the EVP and CFO now holds 1,100 shares of the company’s stock, valued at 56,100. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.20%.
4 out of 12 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Semtech Corporation stock. 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 $59.45.