Northland Securities Upgrades Semtech (NASDAQ:SMTC) to “Outperform”

Semtech (NASDAQ:SMTC) was upgraded by stock analysts at Northland Securities from a “market perform” rating to an “outperform” rating in a research note issued to investors on Thursday, Marketbeat Ratings reports. The brokerage presently has a $182.00 price target on the semiconductor company’s stock. Northland Securities’ target price suggests a potential upside of 29.26% from the company’s previous close.

A number of other research firms also recently weighed in on SMTC. TD Cowen boosted their target price on Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research report on Monday, June 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a research report on Thursday, June 18th. Morgan Stanley boosted their price target on shares of Semtech from $175.00 to $195.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Susquehanna upped their price target on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research report on Wednesday, May 27th. Finally, UBS Group raised their price objective on Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday. Fifteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $204.71.

Semtech Trading Up 10.4%

Shares of SMTC opened at $140.80 on Thursday. Semtech has a 1-year low of $55.18 and a 1-year high of $177.35. The company has a market capitalization of $13.12 billion, a P/E ratio of 93.25 and a beta of 2.35. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. The firm’s 50 day simple moving average is $135.94 and its 200 day simple moving average is $118.62.

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

Insider Activity at Semtech

In related news, COO Asaf Silberstein sold 8,500 shares of the business’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the transaction, the chief operating officer owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of the stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $170.00, for a total transaction of $935,000.00. Following the completion of the transaction, the insider directly owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. The trade was a 6.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 21,734 shares of company stock valued at $3,133,986 over the last three months. Corporate insiders own 0.44% of the company’s stock.

Institutional Trading of Semtech

A number of hedge funds and other institutional investors have recently modified their holdings of SMTC. Jones Financial Companies Lllp boosted its stake in Semtech by 12,214.3% during the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock worth $89,000 after acquiring an additional 2,565 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock valued at $323,000 after purchasing an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Semtech by 5.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock worth $14,166,000 after purchasing an additional 22,629 shares in the last quarter. Strs Ohio bought a new stake in shares of Semtech in the 1st quarter worth approximately $65,000. Finally, Cetera Investment Advisers purchased a new stake in shares of Semtech in the 2nd quarter worth approximately $226,000.

Trending Headlines about Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported fiscal Q2 2027 adjusted EPS of $0.71, above the $0.61-$0.62 analyst consensus, while revenue rose 32.7% year over year to $341.9 million, exceeding estimates of approximately $328.7 million. The quarter marked continued year-over-year earnings growth and record sales. Chipmaker Semtech Smashes Sales, Earnings Targets
• Positive Sentiment: Management issued fiscal Q3 revenue guidance of $405 million to $415 million and adjusted EPS of $1.02 to $1.08, well above Wall Street expectations of roughly $359 million in revenue and $0.69 EPS. The outlook is the main catalyst behind the stock’s rise. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: The earnings call highlighted a 91% increase in data-center sales, demand tied to artificial-intelligence infrastructure, a ramp toward 1.6-terabit connectivity, record backlog and capacity expansion. Management also pointed to LoRa growth and potential margin improvement following its planned cellular-business divestiture. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Analysts reaffirmed Buy ratings and raised or maintained price targets, including targets of $200, $215 and $230, citing data-center growth, profitability upside and margin expansion. Unusually heavy call-option activity also signaled bullish short-term trading interest.
• Neutral Sentiment: The cellular-business divestiture represents a strategic shift toward higher-growth data-center markets, but execution, supply constraints and the need to convert backlog into sustained revenue remain important risks for investors.
• Negative Sentiment: Reported insider trading data showed company executives made multiple sales and no purchases during the past six months. While such transactions may be routine, the selling provides a modest counterpoint to the otherwise favorable earnings news. Semtech Posts Record Sales in Fiscal Q2

Semtech Company 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.