Semtech (NASDAQ:SMTC) Issues Q2 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) updated its second quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 0.590-0.630 for the period, compared to the consensus EPS estimate of 0.490. The company issued revenue guidance of $323.0 million-$333.0 million, compared to the consensus revenue estimate of $300.4 million.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SMTC. B. Riley Financial restated a “buy” rating on shares of Semtech in a report on Tuesday, May 12th. Weiss Ratings lowered shares of Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Tuesday, March 24th. Stifel Nicolaus set a $157.00 price target on shares of Semtech in a research note on Thursday, May 21st. Morgan Stanley boosted their price target on shares of Semtech from $89.00 to $155.00 and gave the stock an “equal weight” rating in a research note on Tuesday. Finally, Benchmark boosted their price target on shares of Semtech from $115.00 to $120.00 and gave the stock a “buy” rating in a research note on Tuesday, April 14th. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Semtech has an average rating of “Moderate Buy” and an average target price of $118.50.

Semtech Stock Up 4.9%

SMTC stock opened at $164.46 on Wednesday. The company’s 50 day moving average price is $104.05 and its 200 day moving average price is $87.58. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.66 and a current ratio of 2.37. Semtech has a fifty-two week low of $34.59 and a fifty-two week high of $168.29. The firm has a market capitalization of $15.31 billion, a price-to-earnings ratio of -373.77 and a beta of 2.22.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. The company had revenue of $291.00 million for the quarter, compared to analyst estimates of $283.53 million. Semtech had a negative net margin of 3.86% and a positive return on equity of 18.09%. The firm’s revenue was up 15.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities research analysts anticipate that Semtech will post 1.6 EPS for the current fiscal year.

Insider Buying and Selling

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $90.11, for a total value of $180,220.00. Following the transaction, the chief executive officer directly owned 73,228 shares in the company, valued at $6,598,575.08. This represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 9,186 shares of the stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $75.05, for a total transaction of $689,409.30. Following the completion of the transaction, the chief financial officer owned 32,710 shares in the company, valued at $2,454,885.50. This represents a 21.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 36,884 shares of company stock valued at $3,069,245 over the last three months. 0.48% of the stock is currently owned by insiders.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech delivered a beat-and-raise quarter, with Q1 earnings and revenue both above estimates and Q2 guidance well above expectations. Semtech Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management pointed to faster data center growth, driven by 800G FiberEdge and 1.6T ramps, which supports a stronger second-half outlook. SMTC Q1 Earnings Call Flags Faster Data Center Growth
• Positive Sentiment: UBS and Baird both reiterated bullish ratings and raised their price targets to $225, signaling rising confidence in the company’s optical and data center momentum. Semtech Price Target Raised to $225…
• Neutral Sentiment: Northland Securities downgraded the stock to market perform, which partially offsets the otherwise positive post-earnings analyst tone.

Hedge Funds Weigh In On Semtech

A number of hedge funds have recently modified their holdings of SMTC. Think Investments LP purchased a new position in shares of Semtech during the third quarter worth approximately $58,618,000. Ameriprise Financial Inc. grew its position in shares of Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after acquiring an additional 666,456 shares during the last quarter. Atreides Management LP purchased a new position in shares of Semtech during the second quarter worth approximately $29,880,000. Whale Rock Capital Management LLC grew its position in shares of Semtech by 11.3% during the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock worth $287,499,000 after acquiring an additional 396,504 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its position in shares of Semtech by 23.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,987,888 shares of the semiconductor company’s stock worth $146,488,000 after acquiring an additional 374,548 shares during the last quarter.

About Semtech

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.