Semtech’s (SMTC) “Buy” Rating Reaffirmed at TD Cowen

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reaffirmed by TD Cowen in a research report issued on Friday, Benzinga reports. They presently have a $215.00 price objective on the semiconductor company’s stock. TD Cowen’s target price indicates a potential upside of 52.82% from the stock’s current price.

Several other equities analysts also recently issued reports on SMTC. Wall Street Zen raised shares of Semtech from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Oppenheimer lifted their target price on shares of Semtech from $200.00 to $225.00 and gave the stock an “outperform” rating in a research note on Thursday, October 1st. Roth Capital set a $220.00 target price on shares of Semtech in a research note on Wednesday, August 26th. Seaport Research Partners assumed coverage on shares of Semtech in a research note on Tuesday, September 22nd. They set a “buy” rating and a $200.00 target price for the company. Finally, Benchmark reissued a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. One equities research 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 stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $212.12.

Semtech Stock Down 2.4%

Shares of NASDAQ SMTC traded down $3.52 during trading on Friday, hitting $140.69. The stock had a trading volume of 1,597,964 shares, compared to its average volume of 2,863,766. The company has a market capitalization of $13.13 billion, a PE ratio of 93.36 and a beta of 2.41. The firm has a fifty day moving average of $157.02 and a two-hundred day moving average of $139.23. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31. Semtech has a 12 month low of $60.28 and a 12 month high of $201.99.

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

Insider Buying and Selling

In other Semtech news, Director Paul Walsh, Jr. sold 500 shares of Semtech stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $172.61, for a total transaction of $86,305.00. Following the sale, the director owned 26,600 shares of the company’s stock, valued at $4,591,426. The trade was a 1.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 967 shares of Semtech stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total transaction of $172,967.29. Following the sale, the chief financial officer directly owned 35,999 shares in the company, valued at approximately $6,439,141.13. This trade represents a 2.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 13,737 shares of company stock worth $2,267,877 in the last 90 days. 0.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Andar Capital Management HK Ltd purchased a new stake in Semtech during the 2nd quarter valued at about $162,000,000. BlackRock Inc. acquired a new position in shares of Semtech during the second quarter worth $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position 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 valued at $136,298,000 after acquiring an additional 672,447 shares during the period. Assenagon Asset Management S.A. increased its position in shares of Semtech by 323.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after acquiring an additional 596,373 shares during the period. Finally, Atreides Management LP purchased a new stake in Semtech in the second quarter valued at $89,214,000.

Semtech News Roundup

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.