Semtech (NASDAQ:SMTC) Stock Rating Upgraded by Zacks Research

Semtech (NASDAQ:SMTC) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Monday, Zacks reports.

Other equities research analysts have also issued reports about the stock. B. Riley Financial upped their price objective on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Stifel Nicolaus lifted their target price on shares of Semtech from $157.00 to $188.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Wall Street Zen raised shares of Semtech from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. TD Cowen upped their price target on shares of Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Finally, Roth Capital set a $220.00 price target on Semtech in a report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned 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 $204.71.

Semtech Price Performance

Semtech stock opened at $174.33 on Monday. The stock’s 50 day moving average is $138.64 and its 200 day moving average is $127.43. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. The firm has a market cap of $16.27 billion, a P/E ratio of 115.45 and a beta of 2.35. Semtech has a one year low of $57.50 and a one year high of $190.64.

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. The business had revenue of $341.87 million during the quarter, compared to the consensus estimate of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company’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 posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, research analysts expect that Semtech will post 2.64 EPS for the current year.

Insider Buying and Selling

In related news, CEO Hong Hou sold 2,000 shares of the business’s stock in a transaction 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 transaction, the chief executive officer owned 60,799 shares in the company, valued at $8,433,429.29. The trade was a 3.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 683 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $159.90, for a total transaction of $109,211.70. Following the transaction, the chief financial officer directly owned 35,366 shares in the company, valued at approximately $5,655,023.40. This represents a 1.89% 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 have sold a total of 23,238 shares of company stock worth $3,274,388 over the last ninety days. 0.44% of the stock is owned by company insiders.

Institutional Trading of Semtech

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in Semtech in the second quarter worth approximately $1,577,947,000. ABS Investment Management LLC acquired a new position in shares of Semtech during the second quarter worth approximately $178,035,000. Andar Capital Management HK Ltd acquired a new position in shares of Semtech during the second quarter worth approximately $162,000,000. Geode Capital Management LLC lifted its holdings in shares of Semtech by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock worth $154,704,000 after purchasing an additional 6,715 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings 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 in the last quarter.

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

Semtech Company Profile

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.