The stock of Semtech Corporation (NASDAQ:SMTC) is now priced at $53.26 and the shares are -0.51 points down or -0.95% lower compared to its previous closing price of $53.77. The stock had 356531 contracts set over the past session. SMTC shares’ daily volume is compared to its average trading volume at 492154 shares. However, it has a float of 64.18 million and although its performance was 4.93% over the week, it’s one to watch. Analysts have given the SMTC stock a yearly average price target of $58.92 per share. It means the stock’s upside potential is 10.63% with the SMTC share price recently placing at $53.23 to $54.84. However, some brokerage firms have priced the stock below the average, including one that has called $48.
The shorts are climbing into the Semtech Corporation stock, with the latest data on short interest released on June 15, 2020, showing that short interest numbers in the SMTC shares have risen. Short interest in the stock represents just 2.19% of its float, but the volume has raised by 247574. The volume of shorted shares rised to 1.406 million from 1.159 million shares over the last two weeks. The average intraday trading volume has been 536178 shares, which means that days to cover moved to roughly 2.622909.
In the last trading session, Semtech Corporation (NASDAQ:SMTC) raised by $2.5 over the week and lost -$0.95 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $58.23. The stock recorded its established 52-week high on 06/05/20.
Since 03/17/20, the stock has traded to a low of $26.03 at 104.61%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.68. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Semtech Corporation’s two-week RSI is 57.78. This suggests that the stock is neutral at the moment and that SMTC shares’ price movement remains stable. The stochastic readings are equally revealing at 80.72% meaning the SMTC share price is currently in oversold territory.
The technical chart shows that the SMTC stock will likely settle at between $54.32 and $55.39 per share. However, if the stock dips below $52.71, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $52.17.
Currently, the stock is trading in the green of MACD, with a reading of 1.5. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Cowen though raised target price of SMTC stock from $50 to $60 but maintained Outperform recommendation in their May 28 review. Needham analysts see the stock as a Buy, but they also raised the share’s target price from $45 to $47 in a flash note released to investors on April 15. Needham seeing the improvements upgraded the stock from Hold to Buy on March 12, placing it at $45.
The average rating for the SMTC equity is 2 and is currently gathering a bullish momentum. Of 14 analysts tracking Semtech Corporation polled by Reuters, 3 rated SMTC as a hold. The remaining 11 analysts were split evenly. However, the split wasn’t equal as a majority (11) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the SMTC stock price is 25.43X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 123.9 above the group’s average of 25.8. Semtech Corporation has its P/E ratio at 5.2, which means that the stock is currently trading at a discount relative to the 5.2 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Semtech Corporation (NASDAQ:SMTC) will decrease by about -99.89%, which will see them reach $141.76 million. The company’s full-year revenues are, however, expected to increase by about 3.82%, up from $547.51 million to $568.43 million. SMTC’s expected adjusted earnings should surge almost 7.89% to end up at $0.41 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 9.87% to record $1.67/share.