How to Buy Semtech Stock
Semtech Corp
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms.
Semtech stock last closed at $31.05, down 3.12% from the previous day, and has increased 40.43% in one year. It has overperformed other stocks in the Semiconductors industry by 0.21 percentage points. Semtech stock is currently +136.48% from its 52-week low of $13.13, and -13.27% from its 52-week high of $35.80.
At the moment, there are 64.56M shares of SMTC outstanding. The market value of SMTC is $2.00B. In the last 24 hours, 2.67M SMTC shares were traded.
How to Buy Semtech Stock
Not sure how to invest in Semtech stock? Here's how.
- Decide where to buy Semtech stock: You need to decide on an online brokerage, but don't worry - we've researched dozens of stock brokerages and apps to help you decide where to buy Semtech stock.
- Create your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Put funds into your brokerage account: Pick your method of payment and add your information.
- Research Semtech stock: The Semtech ticker symbol is SMTC. Is Semtech stock a good investment? Should you buy shares of SMTC? How do SMTC's underlying business fundamentals look? Do top analysts think Semtech is a good buy? Why has SMTC's stock price moved recently? (Hint: Our stock market research tools can help you figure out if SMTC is a good stock to buy).
- Execute your SMTC trade: Decide if you will purchase SMTC shares at the current market price or use a limit order to buy SMTC shares at a particular price.
- Watch your investment in SMTC: Create a watchlist to key updates about your investment in Semtech shares.
Step 1: Decide where to buy Semtech stock
You need an online brokerage account to access the NASDAQ market and buy SMTC stock.
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Open eToro AccountStep 2: Create your brokerage account
Now that you've picked your brokerage, you'll need to fill out some personal details so you can invest in SMTC today.
How to Set Up a New Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal details to start your new trading account.
- Submit your details by pressing the "Create Account" button. Get started with eToro today
Step 3: Put funds into your brokerage account
Now that you've created your account on the best stock investing app, you need to deposit funds:
Watch the walkthrough below for more details transferring money into your new investment account.
Step 4: Research Semtech stock
After you have decided on the best place to buy Semtech stock, it's very important to analyze their stock before you buy, so you actually wrap your head around the risk as well as the opportunity.
Semtech Numbers
Semtech Due Diligence Checks
WallStreetZen was created to help average investors perform better fundamental analysis.
You can see all of the due diligence checks on SMTC's stock page.
Is SMTC stock undervalued?
Analysts use a variety of different financial metrics, analyses, models, and charts to gauge SMTC's fair value.
You can access more valuation research on SMTC's stock here.
SMTC Financials at a glance
Positive Financial Indicators:
- There are more short-term assets than short-term liabilities on the SMTC balance sheet.
- SMTC has cash burn of 122695000. It has sufficient cash and short-term investments to cover this for at least one year.
- SMTC has $128.59M in cash and short term investments. This is sufficient to cover its annual cash burn of $122.70M.
Negative Financial Indicators:
- SMTC debt to equity ratio of -5.47 is negative.
- There are more long-term liabilities than short-term assets on the SMTC balance sheet.
- SMTC profit margin has gone down from 8.1% to -125.7% in the past year.
- Total SMTC debt is still negative.
Is Semtech stock a Buy, Hold, or Sell, according to analysts?
Out of 8 Equities analysts who research SMTC, the consensus analyst rating on Semtech is a Strong Buy
Please keep in mind that analyst ratings are not stock recommendations, nor are they financial advice.
Latest SMTC Analyst Recommendations
Christopher Rolland, a top 1% analyst from Susquehanna maintains SMTC with a strong buy rating and raises their SMTC price target from $30.00 to $45.00, on Apr 1, 2024.
Quinn Bolton, a top 1% analyst from Needham maintains SMTC with a buy rating and raises their SMTC price target from $26.00 to $38.00, on Apr 1, 2024.
Needham's Quinn Bolton raised their price target on Semtech (NASDAQ: SMTC) by 46.2% from $26 to $38 on 2024/04/01. The analyst maintained their Buy rating on the stock.
The analyst reminded investors that Needham started to be more positive on the stock in 2023/09 following managerial changes and expectations of improved expense discipline.
Now, with the Active Copper Cable (ACC) use-case expansion in GPU back-end networks, Data Center ramps should speed up Semtech's cyclical recovery, Bolton predicted.
Further, bookings and point-of-sale data are encouraging with both metrics having increased in all three end markets, the analyst added.
Earnings Report
Semtech reported:
For Q4 2024:
- Loss per share of $0.06, which missed the Zacks Consensus Estimate of $(0.05) and, by 112.8%, Q4 2023’s $ $0.47.
- Revenues of $192.95M, which beat the Zacks Consensus Estimate by 0.89% and, by 15.2%, Q4 2023’s $167.51M.
- Gross margin of 48.9%, down 22% Y/Y.
- Operating expenses of $76.5M, up 15% Y/Y.
- Operating income of $17.8M, down 53% Y/Y.
- Operating margin of 9.2%, down 59% Y/Y.
- EBITDA of $24M, down 45.6% Y/Y.
For FY 2024:
- EPS of $0.14, down 95% Y/Y.
- Revenue of $868.8M, up 14.8% Y/Y.
- Gross margin of 49.5%, down 23% Y/Y.
- Operating expenses of $337.5M, up 22% Y/Y.
- Operating income of 92.7%, down 56% Y/Y.
- Operating margin of 10.7%, down 62% Y/Y.
- EBITDA of $122M, 48.4% Y/Y.
For Q1 2025, management guided:
- EPS of $(0.04) to $0.04.
- Revenue of $195M to $205M.
- Gross margin 49.5%.
- Operating expenses of $77M to $80M
- Operating income of $17.5M to $23.5M.
- Operating margin of 10.3%
- EBITDA of $24.8M to $30.8M.
President & CEO Paul H. Pickle commented: "End market demand for our semiconductor business has progressed from stable to growing.
"While our hardware business remains constrained, we believe Semtech is well-positioned to benefit from near-term growth trends, particularly in our infrastructure end market.”
Executive Vice President and CFO Mark Lin added, "Working capital improvements contributed to positive operating and free cash flows for the fourth quarter, and we completed an optional principal prepayment on our credit facility.
"We went live on a single ERP at the beginning of Q1 2025, which we expect will increase efficiencies and enhance internal controls."
Scott Searle, a bottom 10% analyst from Roth MKM maintains SMTC with a strong buy rating and lowers their SMTC price target from $46.00 to $42.00, on Dec 7, 2023.
You can dive deeper into what analysts are saying on the Semtech stock forecast page.
SMTC Trading Indicators
SMTC Performance Numbers
Last year, SMTC revenue was $868.76M. During the past 5 year, SMTC's revenue has grown by 6.73% per year. This was slower than the Semiconductors industry average of 23.19%.
Learn more about SMTC's earnings and revenue performance here.
Latest Insiders Trades at SMTC
In the last 12 months, executives and large shareholders at SMTC have sold more shares than they have bought.
Mark Lin, EVP and CFO of SMTC, was the latest SMTC insider to buy. They bought $33,232.00 worth of SMTC stock on Apr 8, 2024.
Learn more about who owns SMTC shares here.
Can I rely on SMTC as an income stream?
No, Semtech doesn't provide an income stream by paying out dividends.
What others are saying about SMTC
One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to see what other traders have to say.
Step 5: Execute your SMTC trade
You have two primary types of orders:
- Market order: A market order is an order to buy or sell a stock at the best available price.
Market orders are mostly the easiest way to buy. - Limit order: A limit order lets you buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at a particular dollar amount, place a limit order.
Click the Open Trade button and your broker will place the order.
If you want more help buying stocks on eToro, watch the helpful video below:
Step 6: Watch your investment in SMTC
Now that you own some shares in SMTC, you'll want to keep up with your new investment.
Add SMTC to a watchlist to get the latest updates about your SMTC stock.
SMTC Feed
How to Buy Stock in Semtech
To reiterate, here are the 6 steps to buy Semtech stock:
- Decide where to buy Semtech stock
- Create your brokerage account
- Put funds into your brokerage account
- Research Semtech stock
- Execute your SMTC trade
- Watch your investment in SMTC
If you are looking for a place to buy stocks, eToro is our favorite option.
Get Started with eToro TodayIf you want to keep tabs on your investment in Semtech, click the button below.
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