Semtech (NASDAQ:SMTC) Earns Buy Rating from TD Cowen

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reaffirmed by stock analysts at TD Cowen in a research note issued on Friday, Benzinga reports. They presently have a $215.00 target price on the semiconductor company’s stock. TD Cowen’s price target would suggest a potential upside of 53.10% from the company’s previous close.

Several other research firms have also commented on SMTC. Morgan Stanley set a $205.00 price objective on Semtech in a research report on Friday. BMO Capital Markets boosted their price objective on Semtech from $155.00 to $230.00 and gave the stock an “outperform” rating in a research note on Tuesday. UBS Group upped their target price on Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Wednesday, August 26th. Needham & Company LLC reaffirmed a “buy” rating and issued a $200.00 target price on shares of Semtech in a research report on Wednesday, August 26th. Finally, Weiss Ratings lowered Semtech from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $212.12.

Semtech Trading Down 2.6%

Shares of NASDAQ SMTC traded down $3.78 during trading on Friday, hitting $140.43. 1,030,091 shares of the company traded hands, compared to its average volume of 2,860,012. The firm has a market capitalization of $13.11 billion, a P/E ratio of 93.30 and a beta of 2.41. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The company has a 50-day moving average price of $157.02 and a 200-day moving average price of $139.23. Semtech has a 1 year low of $60.28 and a 1 year high of $201.99.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.10. The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The business’s quarterly revenue was up 32.7% on a year-over-year basis. During the same period last year, the company posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities analysts predict that Semtech will post 2.64 EPS for the current year.

Insider Activity at Semtech

In other news, CEO Hong Q. Hou sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $138.71, for a total transaction of $277,420.00. Following the completion of the sale, the chief executive officer owned 60,799 shares of the company’s stock, valued at approximately $8,433,429.29. This trade represents a 3.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 967 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total transaction of $172,967.29. Following the sale, the chief financial officer directly owned 35,999 shares of the company’s stock, valued at $6,439,141.13. The trade was a 2.62% decrease in their position. 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 sold 13,737 shares of company stock worth $2,267,877 over the last ninety days. Company insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Andar Capital Management HK Ltd acquired a new position in Semtech during the 2nd quarter worth $162,000,000. BlackRock Inc. bought a new stake in shares of Semtech in the 2nd quarter worth about $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Semtech by 396.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after purchasing an additional 672,447 shares during the last quarter. Assenagon Asset Management S.A. increased its position in shares of Semtech by 323.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock worth $60,051,000 after purchasing an additional 596,373 shares during the last quarter. Finally, Jennison Associates LLC raised its stake in shares of Semtech by 15.6% in the 1st quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company’s stock valued at $57,235,000 after purchasing an additional 100,552 shares in the last quarter.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its data-center outlook, saying revenue from the business is expected to more than double over the coming fiscal years. The company’s growth strategy is centered on expanding demand for connectivity products used in artificial-intelligence and high-performance data centers. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets
• Positive Sentiment: Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target, while BMO raised its target to $230. These actions signal that several analysts see meaningful upside from the company’s data-center opportunity.
• Positive Sentiment: Stifel Nicolaus lowered its price target from $220 to $200 but maintained a “buy” rating, indicating that the target reduction was not a change in its broadly positive view of Semtech’s prospects.
• Neutral Sentiment: Management’s Analyst Day presentation provided additional detail on Semtech’s data-center growth strategy and longer-term outlook. Investors are now weighing the potential for substantial growth against the time required to convert that outlook into earnings and cash flow. Semtech Outlines Data Center Growth Strategy at Analyst Day
• Negative Sentiment: The shares declined about 10% during the Analyst Day session, suggesting investors may have viewed the increased outlook as insufficient relative to Semtech’s elevated valuation and already-high expectations. The pullback also reflects uncertainty over the timing of the projected data-center revenue acceleration. Semtech declines 10% amid analyst day

Semtech Company Profile

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.