Commerce Bank Makes New Investment in Semtech Corporation $SMTC

Commerce Bank bought a new stake in Semtech Corporation (NASDAQ:SMTC) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 5,288 shares of the semiconductor company’s stock, valued at approximately $856,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. FNY Investment Advisers LLC grew its position in Semtech by 900.0% in the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Semtech during the second quarter valued at approximately $32,000. Allworth Financial LP bought a new stake in shares of Semtech during the second quarter valued at approximately $55,000. Allied Private Wealth LLC acquired a new position in shares of Semtech during the second quarter worth approximately $65,000. Finally, Banque Cantonale Vaudoise acquired a new position in shares of Semtech during the first quarter worth approximately $33,000.

Insider Activity at Semtech

In other news, CFO Mark Lin sold 970 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction of $145,897.70. Following the completion of the sale, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total value of $294,093.60. Following the completion of the transaction, the executive vice president owned 8,611 shares of the company’s stock, valued at $1,118,568.90. This trade represents a 20.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,734 shares of company stock valued at $3,133,986 over the last ninety days. Company insiders own 0.44% of the company’s stock.

Semtech News Summary

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly results beat expectations. Fiscal Q2 revenue rose 32.7% year over year to $341.9 million, exceeding the $328.7 million consensus estimate, while adjusted EPS of $0.71 topped expectations near $0.61 and increased from $0.41 a year earlier. Semtech Announces Second Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Outlook substantially exceeded consensus. Semtech forecast fiscal Q3 revenue of approximately $410 million, compared with analysts’ expectations of about $359 million, and adjusted diluted EPS of roughly $1.05 versus consensus near $0.69. The guidance implies continued sequential growth and supported the stock’s advance. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Data-center momentum is strengthening. Management highlighted a 1.6-terabit data-center product ramp, record backlog and a 91% increase in data-center sales, benefiting from AI infrastructure demand. Capacity expansion and tight GaN supply could support additional growth. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Analyst sentiment improved. Multiple analysts raised their price targets following the earnings report, while Needham and Susquehanna reiterated Buy ratings with targets of $200 and $200–$215. Increased call-option activity also reflects bullish near-term positioning. Analysts Revise Forecasts After Upbeat Q2 Results
• Neutral Sentiment: Semtech’s planned cellular-business divestiture is intended to concentrate resources on data centers and create a structural margin benefit, though execution and the timing of the portfolio transition remain important risks.
• Negative Sentiment: Some recent disclosures show substantial insider selling, with executives reporting sales but no purchases over the past six months. The company also continues to post a negative GAAP net margin, factors that may temper enthusiasm despite the stronger outlook.

Semtech Trading Up 10.4%

Shares of NASDAQ:SMTC opened at $140.80 on Thursday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.62 and a current ratio of 2.37. The stock has a market capitalization of $13.12 billion, a price-to-earnings ratio of 93.25 and a beta of 2.35. Semtech Corporation has a 1-year low of $55.18 and a 1-year high of $177.35. The company has a 50 day moving average price of $135.94 and a 200 day moving average price of $118.62.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10. The company had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. Semtech had a return on equity of 23.54% and a net margin of 13.11%.The firm’s revenue was up 32.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, research analysts anticipate that Semtech Corporation will post 1.81 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on SMTC. Stifel Nicolaus lifted their target price on Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. UBS Group increased their price target on Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday. Zacks Research lowered Semtech from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Morgan Stanley lifted their price objective on shares of Semtech from $175.00 to $195.00 and gave the company an “equal weight” rating in a research note on Wednesday. Finally, Roth Capital set a $220.00 price objective on shares of Semtech in a report on Wednesday. Fourteen analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $201.44.

Semtech Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.