TD Cowen Reaffirms Buy Rating for Semtech (NASDAQ:SMTC)

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reissued by TD Cowen in a research note issued to investors on Friday, Benzinga reports. They presently have a $215.00 price target on the semiconductor company’s stock. TD Cowen’s price objective indicates a potential upside of 53.46% from the stock’s previous close.

Several other research analysts also recently commented on SMTC. Seaport Research Partners began coverage on Semtech in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $200.00 price objective on the stock. New Street Research set a $230.00 target price on Semtech in a research note on Thursday, August 20th. UBS Group raised their target price on shares of Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, August 26th. Morgan Stanley set a $205.00 price target on Semtech in a research note on Friday. Finally, Robert W. Baird upped their price target on shares of Semtech from $225.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. 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, the stock currently has an average rating of “Moderate Buy” and an average target price of $212.12.

Semtech Stock Down 2.8%

NASDAQ:SMTC traded down $4.11 during trading hours on Friday, hitting $140.10. 2,112,975 shares of the company traded hands, compared to its average volume of 2,866,649. 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 market cap of $13.08 billion, a PE ratio of 92.95 and a beta of 2.41. Semtech has a one year low of $60.28 and a one year high of $201.99. The firm’s 50-day simple moving average is $157.02 and its 200-day simple moving average is $139.23.

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

Insider Buying and Selling

In other Semtech news, EVP Jason Elliot Green sold 2,766 shares of Semtech stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total transaction of $526,508.10. Following the completion of the sale, the executive vice president owned 7,367 shares of the company’s stock, valued at approximately $1,402,308.45. The trade was a 27.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Walsh, Jr. sold 500 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total value of $86,305.00. Following the completion of the transaction, the director directly owned 26,600 shares in the company, valued at $4,591,426. This represents a 1.85% decrease in their ownership of the stock. 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 13,737 shares of company stock valued at $2,267,877 over the last quarter. 0.44% of the stock is owned by company insiders.

Institutional Trading of Semtech

Large investors have recently made changes to their positions in the business. ABS Investment Management LLC purchased a new position in shares of Semtech during the second quarter worth $178,035,000. FNY Investment Advisers LLC grew its position in Semtech by 900.0% during 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 period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Semtech during the 2nd quarter worth about $32,000. Allworth Financial LP purchased a new position in shares of Semtech during the 2nd quarter valued at about $55,000. Finally, Allied Private Wealth LLC purchased a new position in shares of Semtech during the 2nd quarter valued at about $65,000.

More Semtech News

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.