Park West Asset Management LLC Takes Position in Semtech Corporation $SMTC

Park West Asset Management LLC purchased a new stake in shares of Semtech Corporation (NASDAQ:SMTC) during the 2nd quarter, Holdings Channel reports. The fund purchased 221,162 shares of the semiconductor company’s stock, valued at approximately $35,795,000. Semtech comprises 2.4% of Park West Asset Management LLC’s investment portfolio, making the stock its 20th biggest position.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in SMTC. Royce & Associates LP grew its stake in shares of Semtech by 144.5% during the 4th quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company’s stock worth $7,930,000 after acquiring an additional 63,603 shares in the last quarter. Argos Wealth Advisors LLC bought a new stake in shares of Semtech in the fourth quarter valued at about $640,000. Geode Capital Management LLC grew its stake in shares of Semtech by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock valued at $154,704,000 after acquiring an additional 6,715 shares in the last quarter. Strs Ohio increased its position in Semtech by 558.9% during the fourth quarter. Strs Ohio now owns 48,100 shares of the semiconductor company’s stock worth $3,544,000 after acquiring an additional 40,800 shares during the period. Finally, Swiss National Bank raised its stake in Semtech by 6.9% in the 1st quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company’s stock worth $14,071,000 after purchasing an additional 11,800 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SMTC shares. Citigroup lowered shares of Semtech from a “buy” rating to a “market perform” rating in a research report on Tuesday, May 26th. Northland Securities cut Semtech from an “outperform” rating to a “market perform” rating in a report on Tuesday, May 26th. Roth Capital set a $220.00 target price on Semtech in a research report on Wednesday. Benchmark restated a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $200.00 price target on shares of Semtech in a research note on Wednesday. Fourteen analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Semtech currently has an average rating of “Moderate Buy” and an average target price of $201.44.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly results beat expectations. Fiscal Q2 revenue rose 32.7% year over year to $341.9 million, exceeding the $328.7 million consensus estimate, while adjusted EPS of $0.71 topped expectations near $0.61 and increased from $0.41 a year earlier. Semtech Announces Second Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Outlook substantially exceeded consensus. Semtech forecast fiscal Q3 revenue of approximately $410 million, compared with analysts’ expectations of about $359 million, and adjusted diluted EPS of roughly $1.05 versus consensus near $0.69. The guidance implies continued sequential growth and supported the stock’s advance. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Data-center momentum is strengthening. Management highlighted a 1.6-terabit data-center product ramp, record backlog and a 91% increase in data-center sales, benefiting from AI infrastructure demand. Capacity expansion and tight GaN supply could support additional growth. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Analyst sentiment improved. Multiple analysts raised their price targets following the earnings report, while Needham and Susquehanna reiterated Buy ratings with targets of $200 and $200–$215. Increased call-option activity also reflects bullish near-term positioning. Analysts Revise Forecasts After Upbeat Q2 Results
• Neutral Sentiment: Semtech’s planned cellular-business divestiture is intended to concentrate resources on data centers and create a structural margin benefit, though execution and the timing of the portfolio transition remain important risks.
• Negative Sentiment: Some recent disclosures show substantial insider selling, with executives reporting sales but no purchases over the past six months. The company also continues to post a negative GAAP net margin, factors that may temper enthusiasm despite the stronger outlook.

Semtech Stock Performance

Shares of Semtech stock opened at $140.80 on Thursday. The stock has a market cap of $13.12 billion, a price-to-earnings ratio of 93.25 and a beta of 2.35. The company’s fifty day moving average is $135.94 and its 200 day moving average is $118.62. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. Semtech Corporation has a twelve month low of $55.18 and a twelve month high of $177.35.

Semtech (NASDAQ:SMTC) last issued its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million during the quarter, compared to the consensus estimate of $328.67 million. Semtech had a return on equity of 23.54% and a net margin of 13.11%.During the same period last year, the company earned $0.41 earnings per share. The firm’s 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. Sell-side analysts forecast that Semtech Corporation will post 1.81 EPS for the current year.

Insider Transactions at Semtech

In other news, CEO Hong Q. Hou sold 2,000 shares of the company’s 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 sale, the chief executive officer directly owned 64,799 shares of the company’s stock, valued at approximately $8,618,267. This represents a 2.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the sale, the chief operating officer owned 96,862 shares of the company’s stock, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 21,734 shares of company stock worth $3,133,986. Company insiders own 0.44% of the company’s stock.

Semtech 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.