Semtech (NASDAQ:SMTC) Stock Keeps Buy Rating at TD Cowen

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reaffirmed by research analysts at TD Cowen in a research note issued on Friday, Benzinga reports. They presently have a $215.00 price objective on the semiconductor company’s stock. TD Cowen’s target price would indicate a potential upside of 51.30% from the stock’s current price.

Other equities research analysts have also recently issued research reports about the company. Needham & Company LLC restated a “buy” rating and set a $200.00 price objective on shares of Semtech in a report on Wednesday, August 26th. BMO Capital Markets boosted their price objective on Semtech from $155.00 to $230.00 and gave the stock an “outperform” rating in a report on Tuesday. Weiss Ratings cut Semtech from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, October 6th. UBS Group boosted their price objective on Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a report on Wednesday, August 26th. Finally, Roth Capital set a $220.00 price objective on Semtech in a report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $212.12.

Semtech Stock Performance

Shares of SMTC stock traded down $2.11 on Friday, reaching $142.10. The stock had a trading volume of 1,380,157 shares, compared to its average volume of 2,863,148. 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 firm’s 50-day moving average is $157.02 and its two-hundred day moving average is $139.23. The firm has a market capitalization of $13.26 billion, a price-to-earnings ratio of 94.26 and a beta of 2.41. Semtech has a 12 month low of $60.28 and a 12 month 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 (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. Semtech’s quarterly revenue was up 32.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, research analysts expect that Semtech will post 2.64 EPS for the current fiscal year.

Insider Activity at Semtech

In other news, Director Rodolpho C. Cardenuto sold 5,321 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $877,965.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Jason Elliot Green sold 2,766 shares of the firm’s stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total transaction of $526,508.10. Following the transaction, the executive vice president directly owned 7,367 shares in the company, valued at $1,402,308.45. This represents a 27.30% 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. Over the last quarter, insiders have sold 13,737 shares of company stock valued at $2,267,877. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SMTC. FNY Investment Advisers LLC increased its holdings in shares of Semtech by 900.0% during the second 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. bought a new position in shares of Semtech during the second quarter worth approximately $32,000. Banque Cantonale Vaudoise bought a new position in shares of Semtech during the first quarter worth approximately $33,000. Allworth Financial LP bought a new position in Semtech in the second quarter valued at approximately $55,000. Finally, Allied Private Wealth LLC bought a new position in Semtech in the second quarter valued at approximately $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.