Aggressive Stock Portfolio: 5 Stocks Picked by Hedge Funds

2. Semtech Corporation (NASDAQ:SMTC)

Number of Hedge Fund Holders: 28

Semtech Corporation (NASDAQ:SMTC) is a California-based company that supplies analog and mixed-signal semiconductors and advanced algorithms.  Semtech Corporation (NASDAQ:SMTC)  recently closed its $1.2 billion acquisition of Sierra Wireless (NASDAQ:SWIR). The deal will nearly double Semtech Corporation (NASDAQ:SMTC)’s annual revenues. Semtech Corporation (NASDAQ:SMTC) also said that Sierra Wireless will bring about $100 million in high-margin Internet of Things cloud services recurring revenues.

In November, Semtech Corporation (NASDAQ:SMTC) posted its third quarter results. Adjusted EPS in the quarter came in at $0.65, beating estimates by $0.02. Revenue in the quarter fell by about 8.9% on a YoY basis to reach $177.62 million, still beating estimates by $2.07 million. For the fourth quarter Semtech Corporation (NASDAQ:SMTC) expects its net sales to come in the range of $145.0 million to $155.0 million, versus the consensus of $165.65 million.

At the end of the fourth quarter of 2022, 28 hedge funds tracked by Insider Monkey reported having stakes in Semtech Corporation (NASDAQ:SMTC). The biggest stakeholder of Semtech Corporation (NASDAQ:SMTC) among these hedge funds was D E Shaw which has a $49 million stake in the firm.

Carillon Tower Advisers made the following comment about Semtech Corporation (NASDAQ:SMTC) in its Q3 2022 investor letter:

“Semtech Corporation (NASDAQ:SMTC) makes mixed-signal and analog semiconductors used across end markets that include computing, communications, and the “Internet of Things” (IoT). The stock sold off significantly after Semtech announced that it plans to acquire an IoT solutions provider in a deal that is expected to add significant scale benefits to the company but also to create a meaningful drag on its margin profile.”