Semtech (NASDAQ:SMTC) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Semtech (NASDAQ:SMTC) from a hold rating to a strong-buy rating in a report published on Monday,Zacks reports.

Other analysts have also recently issued research reports about the stock. Morgan Stanley raised their target price on shares of Semtech from $175.00 to $195.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. Oppenheimer set a $200.00 price objective on shares of Semtech in a research report on Wednesday, May 27th. Needham & Company LLC restated a “buy” rating and issued a $200.00 price objective on shares of Semtech in a report on Wednesday, August 26th. Citigroup lowered shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Finally, BMO Capital Markets assumed coverage on shares of Semtech in a research note on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average price target of $204.71.

Semtech Trading Down 1.7%

NASDAQ:SMTC opened at $174.33 on Monday. The stock has a fifty day moving average price of $138.64 and a 200 day moving average price of $127.43. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. Semtech has a 12-month low of $57.50 and a 12-month high of $190.64. The firm has a market cap of $16.27 billion, a PE ratio of 115.45 and a beta of 2.35.

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 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 company had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same quarter last year, the company earned $0.41 EPS. Semtech’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Sell-side analysts anticipate that Semtech will post 2.64 earnings per share for the current fiscal year.

Insider Buying and Selling at Semtech

In other news, CEO Hong Hou sold 2,000 shares of Semtech stock in a transaction on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer directly owned 64,799 shares of the company’s stock, valued at $8,618,267. The trade was a 2.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rodolpho Cardenuto sold 5,321 shares of the company’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $877,965.00. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 23,238 shares of company stock valued at $3,274,388. 0.44% of the stock is owned by company insiders.

Hedge Funds Weigh In On Semtech

A number of hedge funds and other institutional investors have recently made changes to their positions in SMTC. SkyView Investment Advisors LLC purchased a new stake in Semtech during the 2nd quarter valued at approximately $283,000. Sequoia Financial Advisors LLC purchased a new position in shares of Semtech in the 2nd quarter valued at approximately $374,000. Tidal Investments LLC acquired a new position in shares of Semtech in the second quarter valued at approximately $22,728,000. IPG Investment Advisors LLC acquired a new position in shares of Semtech in the second quarter valued at approximately $296,000. Finally, WINTON GROUP Ltd purchased a new stake in shares of Semtech during the second quarter worth approximately $599,000.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech’s LoRa Plus LR2021 transceiver, based on fourth-generation LoRa technology, won the 2026 EDGE Award for Design Innovation. The recognition may strengthen the company’s position in low-power, connected IoT applications and validate its product technology. Semtech LoRa Plus LR2021 EDGE Award
• Positive Sentiment: The company announced full production availability of its 50G optical fronthaul portfolio for next-generation 5G-Advanced radio deployments. The products address rising uplink-capacity requirements and could benefit from the industry’s move toward 50G interfaces and eventual 6G networks. Semtech 50G Optical Transition
• Positive Sentiment: Semtech joined the XPO Multi-Source Agreement and introduced 200G-per-lane modulator-driver and transimpedance-amplifier ICs for high-density optical interconnects. These offerings target bandwidth-intensive AI data-center infrastructure, a major secular growth market. Semtech XPO Optical Interconnects
• Neutral Sentiment: A Zacks analysis identifies Semtech as a strong momentum candidate, supported by its sharp recent appreciation and favorable technical trend. However, momentum signals do not by themselves establish the company’s fundamental valuation or future earnings performance. Semtech Momentum Stock Analysis
• Negative Sentiment: A Semtech director sold approximately $878,000 of company stock. While one insider transaction is not necessarily a change in business outlook, it can add near-term selling pressure or raise caution after the stock’s substantial rally. Semtech Director Stock Sale

About Semtech

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.

The company’s portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.