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

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reaffirmed by stock analysts at TD Cowen in a research report issued to clients and investors on Friday, Benzinga reports. They presently have a $215.00 price objective on the semiconductor company’s stock. TD Cowen’s target price points to a potential upside of 57.24% from the company’s previous close.

A number of other research analysts have also weighed in on the stock. Morgan Stanley set a $205.00 target price on shares of Semtech in a report on Friday. Zacks Research raised shares of Semtech from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. Oppenheimer raised their target price on shares of Semtech from $200.00 to $225.00 and gave the company an “outperform” rating in a report on Thursday, October 1st. BMO Capital Markets raised their target price on shares of Semtech from $155.00 to $230.00 and gave the company an “outperform” rating in a report on Tuesday. Finally, Wall Street Zen raised shares of Semtech from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Semtech presently has an average rating of “Moderate Buy” and a consensus target price of $213.11.

Semtech Price Performance

Shares of SMTC stock traded down $7.48 on Friday, reaching $136.73. The company’s stock had a trading volume of 4,948,091 shares, compared to its average volume of 2,882,163. The stock’s fifty day simple moving average is $157.02 and its 200-day simple moving average is $139.23. Semtech has a 1 year low of $60.28 and a 1 year high of $201.99. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $12.76 billion, a price-to-earnings ratio of 90.55 and a beta of 2.41.

Semtech (NASDAQ:SMTC) last posted 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. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. During the same period last year, the firm posted $0.41 earnings per share. Semtech’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts forecast that Semtech will post 2.64 earnings per share for the current fiscal year.

Insider Activity at Semtech

In other Semtech news, Director Julie Ruehl sold 1,500 shares of Semtech stock in a transaction on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the completion of the transaction, the director directly owned 7,140 shares of the company’s stock, valued at $1,035,300. The trade was a 17.36% decrease in their ownership of the stock. The transaction 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, EVP Jason Elliot Green sold 2,766 shares of Semtech stock in a transaction 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 of the company’s stock, valued at $1,402,308.45. The trade was a 27.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,737 shares of company stock valued at $2,267,877 over the last three months. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of SMTC. Leonteq Securities AG boosted its stake in shares of Semtech by 11.2% during the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock valued at $90,000 after purchasing an additional 118 shares during the period. Corient Private Wealth LP boosted its stake in shares of Semtech by 4.0% during the second quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company’s stock valued at $515,000 after purchasing an additional 122 shares during the period. ABS Investment Management LLC purchased a new stake in shares of Semtech during the second quarter valued at $178,035,000. FNY Investment Advisers LLC boosted its stake 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 valued at $32,000 after purchasing an additional 180 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Semtech during the second quarter valued at $32,000.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its near-term Q3 guidance and presented a longer-term outlook through 2030, helping support a recovery in the stock. Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades
• Positive Sentiment: The company expects data-center revenue to more than double in fiscal 2028 and 2029. Baird reaffirmed its “outperform” rating and $300 target, citing record bookings and strong two-year visibility from demand for copper, fiber and optical connectivity used in AI infrastructure. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: TD Cowen maintained a “buy” rating with a $215 price target, while BMO raised its target to $230. These targets indicate analysts see substantial upside if Semtech delivers on its data-center growth plans.
• Positive Sentiment: Investors purchased approximately 6,179 SMTC call options, about 43% above average daily volume, signaling increased speculative interest in a rebound.
• Neutral Sentiment: Stifel lowered its price target from $220 to $200 but retained a “buy” rating, suggesting valuation or execution concerns while preserving a positive long-term view. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets
• Negative Sentiment: Despite the improved outlook, some investors viewed SMTC as expensive after its roughly eightfold run over the past year. That valuation concern likely contributed to selling pressure around analyst day and could limit further gains unless earnings growth accelerates. Semtech Stock Looks Expensive After Its 8x Run

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.