Connor Clark & Lunn Investment Management Ltd. Makes New Investment in Semtech Corporation $SMTC

Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Semtech Corporation (NASDAQ:SMTC) during the 2nd quarter, HoldingsChannel.com reports. The firm bought 29,288 shares of the semiconductor company’s stock, valued at approximately $4,740,000.

Other hedge funds also recently modified their holdings of the company. FNY Investment Advisers LLC boosted its position in shares of Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after buying an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Semtech during the second quarter valued at $32,000. Banque Cantonale Vaudoise acquired a new position in Semtech during the first quarter valued at $33,000. IFP Advisors Inc acquired a new position in Semtech during the fourth quarter valued at $53,000. Finally, Allworth Financial LP purchased a new stake in Semtech in the 2nd quarter worth about $55,000.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. BMO Capital Markets began coverage on Semtech in a research note on Wednesday. They set an “outperform” rating and a $155.00 target price on the stock. Oppenheimer set a $200.00 price target on shares of Semtech in a research report on Wednesday, May 27th. Mizuho set a $225.00 price target on shares of Semtech in a report on Wednesday, May 27th. Stifel Nicolaus boosted their price objective on shares of Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $200.00 price objective on shares of Semtech in a research note on Wednesday. Fifteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $204.71.

Key Headlines Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly beat and stronger outlook: Semtech reported adjusted EPS of $0.71 versus the $0.61 consensus estimate and revenue of approximately $341.9 million, ahead of expectations. Revenue grew roughly 33% year over year, while management issued Q3 EPS guidance of $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance
• Positive Sentiment: AI and data-center demand are accelerating: Data-center revenue reportedly rose 91%, supported by AI infrastructure investment. Management highlighted a ramp toward 1.6-terabit connectivity, record backlog, capacity expansion, and sustained demand for higher-speed networking products. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Portfolio shift may improve profitability: Semtech’s planned divestiture of its cellular business is intended to concentrate resources on data-center and connectivity markets, while potentially creating a structural improvement in margins. Debt reduction and stronger profitability also supported the bullish reaction. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Analysts raised their stance: Northland Securities upgraded SMTC from Market Perform to Outperform and set a $182 price target, arguing that connectivity is becoming a key bottleneck for AI infrastructure. Needham maintained a Buy rating with a $200 target, while other analysts cited targets as high as $215. Northland lifts Semtech rating, sees connectivity as the AI bottleneck
• Neutral Sentiment: Investor expectations are elevated: Increased call-option activity reflects bullish positioning, but SMTC trades at a high earnings multiple and remains exposed to execution, capacity-expansion, and semiconductor-cycle risks.

Semtech Price Performance

SMTC opened at $142.43 on Friday. The stock has a market cap of $13.27 billion, a price-to-earnings ratio of 94.33 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 current ratio of 1.70, a quick ratio of 1.62 and a debt-to-equity ratio of 0.47. The stock has a fifty day moving average price of $135.62 and a 200 day moving average price of $119.01.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The firm had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same quarter in the previous year, the company posted $0.41 earnings per share. The business’s quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts forecast that Semtech Corporation will post 1.81 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Jason Elliot Green sold 2,264 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the transaction, the executive vice president owned 8,611 shares of the company’s stock, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the business’s stock in a transaction that occurred 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,734 shares of company stock worth $3,133,986 in the last quarter. Corporate insiders own 0.44% of the company’s stock.

About Semtech

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.